Hello and hi. Yup, yet another Brexit post by me. Woot woot. If you think that Brexit is not an important issue then…sorry (not sorry) we can’t be friends. True, it may not be your cup of tea. Also, you may think that since you don’t live in the UK or Europe that it has no impact on you whatsoever. Please tell me you don’t think that, because it is simply not true. Excuse me as I step down from Brexit soapbox long enough to write a post..so anyway, here is what you need to know about Brexit and the German economy. Ok, let’s do this…
In speaking to HuffPost UK, the Association of German Chambers of Commerce and Industry (let’s call them DIHK for obvious reasons, including brevity) gave a rather stern caution, that even IF the UK strikes a moderately free trade deal with the EU, the impact of trade barriers would only be “reduced” and not completely neutralised. In other words: yellow and blue make green. I kid. It means exactly what it means. It simply is a warning that this Brexit is not so Brexit-licious after all. The UK post-Brexit, will face uncertainty regarding trade with Germany. Yikes.
The DIHK painted a pretty pessimistic picture (oh how I love alliteration) regarding future trade with the UK. That being said, the Italian Chamber of Commerce in the UK was a tad more optimistic. You see, they predicted that the Italy’s exports to Britain would not be too drastically affected, post Brexit. Kind of hard to know that, but I certainly do appreciate their optimism. Yes. Yes, I do.
But it is important to remember that trade with Germany is worth BILLIONS more than that with Italy. In brief, the stark warnings from DIHK will only place undue pressure on the UK government, to secure a pretty strong Brexit deal with the EU ASAP. Yup. Good luck with that David Davies et al.
As reported in HuffPost UK, DIHK spokesperson, Thomas Renner indicated that “Brexit will damage the Germany as a whole, despite some single locations or companies who might benefit from the shifting jobs and investment from the UK or of a weaker British Pound.” Renner also added, “Even if Brexit will hit the British economy more, in the end it is a lose-lose situation” My goodness, Renner is not exactly Mr. Optimism now, is he? No. Nope. Nien. Renner also added in a negative Nancy sort of way that:
“Investment decisions will be affected too: a DIHK survey shows that 40% of German companies expect less trading with UK after Brexit and almost 10% plan relocations of investments from UK.”
Well, what can I say…the people voted to leave the EU in the Referendum. We are leaving the EU (eventually). Maybe you think it was the right decision. Maybe you don’t. But guess, what? Brexit is happening and the outlook is not looking that great. Nope. That being said…I should have said earlier that Germany is the UK’s biggest import partner-with approx. £6billion of goods coming into Britain (this number was accurate in November 2016…I do realise that we are nearly into August 2017-but the numbers are both accurate and massive, in equal nature. Yes. Yes, they are. That is all.