The Federation of German Industries (BDI) has warned German companies in the UK to set themselves against a "very hard Brexit". The British government "talks a lot", but has no "clear concept," said BDI chief executive, Joachim Lang. German companies would have to start now with precautions, anything else "would be naive".
German companies are watching the zigzag course of the British government and the burdensome Brexit negotiations with the EU with nervousness. Great Britain is one of the most important trading partners for Germany. German companies have recently exported goods worth around one hundred billion dollars to Great Britain. German companies employ around 400,000 employees in the United Kingdom.
"The unbundling of one of the closest allies of Germany is inevitably associated with high economic losses," warns Lang. Basically, the German economy is preparing itself in working groups for all possible scenarios, according to the BDI. A disorganized departure from the EU without any arrangements for the consequences would lead to considerable disruptions for all parties involved, Lang said. Over many activities of German firms "not only the Damocles sword of uncertainty hovers, they are also exposed to the risk of massive devaluation".
If the British really leave the EU in two years, sectors such as the automotive sector, the energy sector, financial and insurance groups as well as the logistics sector could be particularly strongly affected (more information about the consequences for the German economy can be found here).
The island is so far the most important export market for German cars, BMW operating several plants here. German industry associations have already warned clearly of imminent losses.
On the British leadership, the BDI cannot find a good thing to say. Thus the British proposals for future customs clearance so far are "associated with disproportionately high bureaucratic burdons" and "not practical for companies in day-to-day operations".
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