Friday, December 13, 2019
The uncertainty since the Brexit referendum hurts economic relations between Germany and the United Kingdom. A no-deal is not off the table despite the electoral success of Prime Minister Johnson. The German economy therefore demands a rapid free trade agreement.
After the clear election victory of the conservative party of British Prime Minister Boris Johnson, the German economy is pushing for a rapid free trade agreement. "Now the EU and Great Britain have to work hard on a free trade agreement and bring it to a conclusion by the end of the year," said the General Manager of the German Engineering Federation (VDMA), Thilo Brodtmann. "If this does not succeed, the discussions and uncertainties associated with a tough Brexit start again at the end of 2020. This must be avoided at all costs." The Federation of German Industries (BDI) welcomes the fact that after the election clear conditions prevailed. "The political fog in London is clearing," said Chief Executive Joachim Lang. "With the election exit the order is connected to accept the exit agreement now fast." What is needed now is a clear course by the government as to what the future relationship with the EU should look like. "By 2020 or 2022 at the latest, the negotiations on the future relationship must be completed," said Lang. "Even if the schedule is athletic, the German economy requires a solution." Otherwise threatened at a later date but still a hard Brexit.Unklarheit about economic relationsThe German Chamber of Commerce and Industry sees similar. "After the election in the UK, a decision must soon be made in the Brexit to avert a still threatening no-deal," said DIHK President Eric Schweitzer. The ongoing uncertainty has led to a decline in economic relations between Germany and the United Kingdom since the Brexit referendum in June 2016. Since then, Great Britain has slipped from fifth place to seventh place of the most important German trading partners. Look no further for the future. According to the latest DIHK survey, more than half of German companies in the UK expect economic development in the country to be worse in 2020. Due to the uncertainty about future economic relations, they are also reluctant with their investment and employment plans: About every fifth company wants to reduce jobs there. German companies have 2,500 offices in the UK and over 400,000 employees.