Not only British companies would face serious setbacks – also German companies are threatening according to a study in the case of a hard Brexit costs in the billions. The German industry calls for a transition period.
Before the possibly decisive EU summit at the end of the week to the Brexit, the German industry has urged the negotiators to be more willingness to compromise. For the German companies, a “transitional period until the end of 2020, it was essential,” said the chief Executive of the Federation of German industries (BDI), Joachim Lang, on Tuesday. “A hard Brexit would be a Disaster,” he continued and referred to the possibility of an exit from the UK without agreements on the future relationship with the EU.
By a hard Brexit tens of thousands of companies and hundreds of thousands of workers came in Europe “on both sides of the English channel in the greatest difficulty”. The economy need, instead, “a reasonable ratio of foreign trade to the Kingdom,” demanded Long. At least a waiver on tariffs and quotas on imports from the respective partner region were members of””.
Need a good free-trade agreements””. This should use the policy in the coming weeks, called the BDI-managing Director. Even now, companies made arrangements for the case of a lack of agreement and have announced that the production in the UK from April to rest or to move their headquarters.
BDI-Chef Joachim Lang calls a “sensible relationship in foreign trade with the Kingdom”
The Brexit is scheduled for March of next year and the UK is currently negotiating with the EU, the framework conditions for this. Brussels relies on a breakthrough at the EU summit on the 18. October – plans for a special summit to Brexit in November, had recently been reset.
IW calculated costs for hard-Brexit
The British should leave the EU with no free trade agreement, would the local company duties of more than three billion euros annually, as published on Tuesday the investigation of the employer middle Institut der deutschen Wirtschaft (IW).
Especially the car industry is likely to suffer: around 60 percent of the Germans would account for more costs. In the long run, the economy is likely to react, however, about the increasing prices and flows of goods are shifting.
GB’s third most important trade partners of German companies
German exports insVereinigte Kingdom would be charged according to the study, with an average of 4.3 percent. In turn, the EU could impose tariffs of an average of 2.8 per cent, to British exports, the government in London even of 3.6 per cent on Goods from the Rest of the EU. Trade between the UK and the EU could plummet by up to 50 percent. German exports to the island could decline by up to 57 percent.
“This horror scenario should drive the policy for constructive Action,” says the IW scientists Markos Young. About five percent of Germany’s gross domestic product would directly and indirectly depend on trade with the British. The Kingdom was thus the third most important trading partner for local companies.
ul,tko/hb (afp, rtr, iw)