German industry lobby group warns of hard Brexit risks
The head of an influential German business lobby group warned today that Europe could slip into a “huge crisis” in the event of a hard Brexit.
Managing director of the BDI industry association Joachim Lang told a news conference in Berlin today that a breakthrough in Brexit negotiations was needed at the upcoming European Union summit in Brussels on 17-18 October.
“Otherwise there is the risk that Europe slides into a disorderly Brexit and that would cause a huge crisis,” he said.
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Lang said a hard Brexit would cause major problems for tens of thousands of companies in Europe and hundreds of thousands of employees in the UK and the EU.
He said a transition period, which would need to be part of a Brexit deal, was vital to allow German firms to adapt to the legal changes that the UK leaving the EU would introduce.
“A strong agreement with the EU is far more important for both sides, especially for Britain, than the remote prospect of deals with third countries,” he said.
German economic body IW Institute also warned of the results of a hard Brexit today, saying that German firms would face tariffs of more then €3bn (£2.6bn) a year if the UK leaves the EU without a deal.
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A hard Brexit would hit the German auto sector hard, IW said, representing about 60 per cent of the extra costs German firms would face.
IW researcher Markos Jung said the prospect of a plunge in German exports to the UK in the event of a hard Brexit was a “horrific scenario” which “should force politicians to act constructively.”