The British Chamber of Commerce in Germany recommends German companies to look forward and to urgently prepare themselves for the imminent, complex realities.
- Brexit can also offer opportunities for German companies in the long term.
- Economic relations will remain and may be expanded between Great Britain and Germany.
- Brexit offers the German economy good cause for readjustment.
- Collaborations possible in attractive third markets.
The British Chamber of Commerce in Germany - BCCG – has appealed to companies in Germany to understand all relations with Great Britain as an opportunity both immediately and in the long-term, despite many political turbulences.
BCCG President Michael Schmidt explained:
“The economic ties between Great Britain and Germany will remain. Regardless of the option chosen by the United Kingdom, it will remain a significant economic power and an important partner for Germany. Our companies should, therefore, remain calm with regard to existing and future business relations, secure their businesses - as well as they can - and not jump to conclusions. Companies should be flexible. Identify potential for their own business and develop this sustainably.
Attractive third markets
Andreas Glunz, Managing Partner International Business, KPMG AG Wirtschaftsprüfungsgesellschaft, also sees in the whole Brexit debate a “...... positive opportunity to readjust trading relations”.
Although the 2019 German British Business Outlook survey by KPMG and the BCCG shows that around 40 percent of the companies questioned expect Brexit to strongly influence their businesses, “in the other direction this means that Brexit is an appropriate point in time to pause and to radically reassess the focus of UK business”, says Andreas Glunz.
The new focus of one of the largest trading partners of Germany offers German companies the opportunity to approach new collaboration partners, new investment projects and new common market access. In future Great Britain’s new trade agreement with third-party countries, in particular with the USA, could also contribute in the long-term.”
Preparation for uncertain times
The BCCG appeals to companies in Germany to accept Great Britain leaving the European Union and to use the remaining time to prepare themselves for it.
“Many companies continue to be inadequately prepared on several counts for the risks of a probable exit”, says Michael Schmidt.
Under a hard Brexit companies would have to adjust to profound changes and disruptions of at least several months in economic trade with Great Britain.
“Europe’s financial sector will also be faced with substantial challenges in the next few years. In order that this does not result in disadvantages for all market participants and customers, additional costs and does not fragment the market the community of states should swiftly complete its reform project capital market union”, says Stephan Lutz, Partner and Brexit expert at PwC (BCCG Member).
The BCCG member DZ Bank hopes that Great Britain will also continue to participate in European and global sustainability issues after Brexit.
“The European Union and Great Britain will continue to promote the reduction of carbon-dioxide”, explains Frank Scheidig, Global Head of Senior Executive Banking (Member of the Sustainable Finance Committee of the German government). “The British Climate Protection Law will foreseeably remain in effect.”
BCCG President Schmidt urgently appeals:
“The political agony in British Parliament should be overcome as quickly as possible with rationally led debates and decisions. Whether an immediate Brexit, new elections or an extended negotiating scope with the EU, all options require a willingness to compromise and the democratic consensus of all. It is about a peaceful future in Europe.”
This year the BCCG celebrates 100 years since its foundation. With over 600 member firms and over 4000 contacts it sees itself in the year of Brexit as the mediator among the current concrete problems.
On 12 September 2019 the BCCG is holding a large conference in Berlin on occasion of its anniversary. More details on www.bccg100.de
Contact:
Andreas Meyer-Schwickerath, AMS@bccg.de, +49 (30) 206 70 80
Uwe Westphal, info@uwewestphal.com, +49 (174) 511 1100
