Brexit and the German economy Brexit and the German economy
German industrial companies prepare for a hard Brexit. The Federation of German industries (BDI) warned that German firms must prepare for the worst-case scenario of a very hard Brexit (1, 2). The current bilateral trading volume between Great Britain and Germany is at 170bn EUR with direct investments of 140bn EUR and 400k people employed in German firms in Great Britain. Germany and Great Britain have strong economical ties. Any form of Brexit (soft or hard) endangers not only existing investments of firms from both sides but also make future investments less attractive. Several project groups from Germany and the EU in Brussels are analysing actual and potential problems for companies facing Brexit.
A comprehensive trade and economic agreement is unlikely to achieve until 30th March 2019. Also, the Association of German Chambers of Industry and Commerce
warns that businesses need clarity what happens after March 2019. It is questionable, how a transition period of 2 to 3 years, as mentioned by Prime Minister Theresa May’s speech in Florence, would work for businesses in the United Kingdom and EU (3, 4).