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Brexit to seriously harm German companies

Staff Writer |
Brexit will "seriously harm" German companies' trade with Britain, according to results of a survey announced by the Association of German Chambers of Commerce and Industry (DIHK).

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The DIHK's "Going International" report on the impact of Brexit surveyed 2,200 companies, 1,300 of whom responded.

The survey found that 9 percent of German companies who have invested in Britain will move investment from Britain to Germany or other EU countries in the wake of Brexit.

Some 40 percent of companies expect to do less business with Britain in the months ahead.

The survey also revealed a great degree of uncertainty among German companies as to what the consequences of Brexit will be.

The months ahead will also see "further decreases" in trade, with previously increasing investment incurring a "sharp weakening."

Eric Schweitzer, president of DIHK, said the EU should not make too many concessions to Britain lest it place the single market at risk - as this would pose an even greater risk for Germany's international companies than Brexit.

Britain is Germany's third largest market for its exports as well as its fourth largest trade partner, with German exports to Britain worth around 86 billion euros and UK exports to Germany worth around 35.6 billion euros.

With 750,000 jobs estimated by the DIHK to be dependent on exports to Britain, the survey found that for 88 percent of German companies the key issue was maintaining the free movement of goods.


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