German economists have warned that no deal could cause German exports to the UK to plummet by as much as 57%. The highly respected IW Economic Institute based in Cologne called for policymakers to take “constructive action” to avoid what they called the “horror scenario” of no deal.
Also : “The biggest risk in the short term is Brexit,” said Dieter Kempf, president of the BDI industry association.
No Deal Would be “Massive Crisis” for EU Warns German Industry https://t.co/DYp4Ll4LUm via @GuidoFawkes
— Will Corry (@slievemore) December 26, 2018
The boss of the BDI – Germany’s equivalent of the CBI – has also warned that a “disorderly Brexit” would be a “massive crisis” for the EU, demanding that political leaders achieve a “breakthrough in the talks” at the next EU summit. As Brexiteers have been saying all along, German industry is desperate for a deal. So why is the UK the only side making serious concessions?
Matthias Wissmann of the German Federation of the Automobile Industry, said: “Brexit and the related lower demand in Britain caused by exchange rates has contributed to a 2.0-per cent fall in car exports, to 4.3 million vehicles.”
The UK is is the biggest export market by unit sales and the second-biggest in cash value.
In a survey conducted by Reuters, the heads of Germany’s leading industry associations said they did not see the economy entering a recession and that most forecasts were predicting a solid growth rate of around 1.5 percent for 2019.
But the industry associations said the economic woes of company executives were increasing and the government should do more to help them, for example by lowering corporate taxes and investing more in digital infrastructure
“The biggest risk in the short term is Brexit,” said Dieter Kempf, president of the BDI industry association.
If Britain left the EU in March without any agreement on its future relations with the bloc, this would create massive uncertainties for trade and business, Kempf warned.
“The British economy would face the direct threat of a recession which would indirectly also affect Germany,” Kempf said.
German carmakers have around 20 per cent of global car market share this year with 16.4 million vehicles sold and produced around half of all new cars registered in Europe.
German carmakers have around 20 percent of global car market share this year with 16.4 million vehicles sold and produced around half of all new cars registered in Europe.
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— Will Corry (@slievemore) October 15, 2018