European Union

Brexit: German companies are already reacting

Barely a week after the Brexit-the decision of the British, German companies make it clear: the consequences are far-reaching. The companies now expect Export losses instead of growth.

More than a third of the UK active German company wants to drive back the investment on the island now, and a good quarter is planning job cuts. This is evident from a quick survey of the German chambers of industry and Commerce DIHK, the members.

The industry Association has asked approximately 5,600 German companies with UK subsidiaries, branch offices, or branches. “The political and legal uncertainty leads already in the transitional period, every fourth company to declining exports to the UK,” said DIHK President Eric Schweitzer of the survey results.

Exports to the UK are set to fall according to the Association now, probably by one per cent in 2016 and five percent in 2017. So far, the DIHK had expected this year with a growth of exports of five per cent.

The United Kingdom is for German exporters are the third most important market in the world after the United States and France. In the past year Were received and goods to the value of almost 90 billion euros there.

Short-Term Delle

A direct impact of Brexit on investment in Germany, the company is not to be feared apparently. “The impact will be rather determined in the long term, the outcome of the exit negotiations,” according to the DIHK. Especially an increase of trade barriers by the British EU exit danger. After the Brexit vote, the company expected that the foreign trade with great Britain to get in the short term, a noticeable Dent, in the medium term, it is expected to decrease due to the agreed exit from the EU even stronger.

The Germany-based subsidiaries of UK companies were planning to respond in the short term, 21 per cent in the UK offices wanted to invest more in Germany. Almost every fourth company wants to increase the number of employees in Germany now.

ar/ul (dpa, rtr)