One and a half months to the exit date: A chaotic, “hard” Brexit increasingly likely. All the more remarkable that many companies have not yet to this scenario prepared.
“The financial supervision and the banks have made great efforts to have a hard Brexit.” So the good news of the Bundesbank’s Executive Board, Joachim Wuermeling is. Medium-sized businesses seem to be lagging behind. “I am concerned, however, that many companies have customers of the Institute so far only insufficiently with the consequences of the Brexits for their financial transactions.” In particular, medium-sized companies are meant by this.
A disorderly Brexit, as most experts predict will be a lot of Chaos. Because from one day to another would be great Britain formally a country like each other outside of the European Union. There would be border controls and customs barriers, for people and Goods. For that reason, firms that undertake any Form of trade with the United Kingdom would need to prepare, even on this worst case of a hard Brexit.
Banks well prepared
From banks is listening to, in fact, for the most part, that has been set to the Worst-Case scenario of a disorderly Brexit. Most clearly visible is on the basis of the fact that many banks have been laying parts of departments out of London to the European mainland, or already relocated. Objectives, in particular, Paris or Frankfurt. “More than 45 financial institutions are in the process of establishing its presence in Germany new, or to strengthen significantly,” said Felix Hufeld, Chairman of the financial Supervisory authority Bafin at a recent new year’s reception in Frankfurt.
A Problem for many companies is according to the Bundesbank, the fact that, in the course of the Brexits contracts need to be adjusted. For this reason, banks have written to their corporate customers, in order to make attention to this Problem. However, the feedbacks are modest. “We appeal to all companies and private customers, to respond to the requirements of banks by now.”
100,000 Jobs at risk?
Because in the worst case, can be shops not to continue or financed. Also, the Bundesverband mittelständische Wirtschaft (BVMW) sounds the Alarm. “We see the balance sheet date on 29. March 2019 with growing concern,” said BVMW President Mario Ohoven at the request of the DW. The Association assumes that one out of every four of its members are insufficiently prepared for the approaching Brexit. “It is irresponsible to continue to hope that the UK’s exit from the EU could be avoided.”
That’s why Ohoven calls, the Federal government should call for a Brexit-a Task Force to develop together with economic and company representatives an emergency program. The BMVW is estimated that in the case of a disordered Brexits about 100,000 jobs in Germany are at risk. This is consistent with a study published by the Leibniz Institute for economic research Halle (IWH) over the past weekend.