Brexit: New hope, but uncertainties remain

Date

14 Nov 2018

Sections

UK in Europe
Frankfurt, November 14, 2018 – Thilo Brodtmann, Executive Director of the VDMA, comments on the progress made in the negotiations on the UK's withdrawal from the EU:
 
"There is new hope that the European economy will be spared a chaotic Brexit. But in view of the political situation in the UK, it's too early to give the all-clear sign now. Companies should continue to reckon with the danger of a hard Brexit and examine how, for example, customers and suppliers would be affected by possible customs controls. A good exit agreement would keep Britain as close as possible to the single market and the customs union and thus keep the exchange of goods simple. But even an agreement on the withdrawal would only be a partial success, because it only regulates the transitional period. In the long run, a trade agreement between the EU and Great Britain would be decisive for the industry."
 
The VDMA represents more than 3200 companies in the medium-sized mechanical and plant engineering sector. With 1.35 million employees in Germany and a turnover of 226 billion euros (2017), the sector is the largest industrial employer and one of Germany's leading industrial sectors overall.