This is why MERKEL needs a Brexit deal: German region facing TURMOIL over UK car sales
Exports to Britain from the German state of Saar fell 13 percent in
the first half of 2017 and business leaders are blaming Brexit directly.The region's Chamber of Industry and Commerce (IHK) said the drop in
sales was a direct result of Britain's decision to withdraw from the
European Union (EU).
And bosses fear trade may be further affected unless a trade agreement
is reached between Britain and Brussels before March 2019, when links
are formally disrupted.
IHK managing director Oliver Groll said the export figures were mainly for the automotive industry, which is the region's largest employer, which houses a key Ford plant.
The Saarland is often referred to as "Autoland" and almost one in two industrial workplaces are directly or indirectly related to automotive manufacturing.The German steel, ceramics, and computer science and information systems industries also have powerful foundations in the state.
The IHK said the situation for Saarland companies remains uncertain
amid fears that export deliveries would become more expensive if
commercial rates were stamped on products after Brexit.
The figure shows that some companies have already partially withdrawn from the UK market, but sales and exports are also falling due to exchange rates.
Britain has been the Saar's most important trading partner since 2012 and last year only goods worth more than £ 2billion were shipped to the UK.Angela Merkel's Economy Minister Brigitte Zypries admitted that Germany would experience trade difficulties because of Brexit but said Britain would suffer more than the remaining 27 EU members when it leaves the bloc.
Zypries said: "I hope we have problems with trade, but it will not be as difficult for Europe as for Britain."
The minister spoke as she handed over the German government's revised growth forecasts to a conference in Berlin.
Germany is taking an increasingly pessimistic view of its post-Brexit economy.
The Federation of German Industries (BDI) has warned German companies operating in the UK to prepare for a "very tough" Brexit and told its members to take precautions or be prepared to face heavy economic losses.BDI Managing Director Joachim Lang stressed the importance for the German industry of ensuring a smooth transition possible, underlining that Britain remains one of the nation's most important trading partners.
German companies export £ 75.8bn of goods to Britain every year and German companies employ about 400,000 workers in the United Kingdom.
Mr. Lang said: "The separation of one of Germany's closest allies is inevitably linked to high economic losses.
"The German economy is preparing for all possible scenarios.
"A disorderly departure of the British from the EU without any follow-up control would lead to considerable agitation for all participants."
And bosses fear trade may be further affected unless a trade agreement
is reached between Britain and Brussels before March 2019, when links
are formally disrupted.IHK managing director Oliver Groll said the export figures were mainly for the automotive industry, which is the region's largest employer, which houses a key Ford plant.
The Saarland is often referred to as "Autoland" and almost one in two industrial workplaces are directly or indirectly related to automotive manufacturing.The German steel, ceramics, and computer science and information systems industries also have powerful foundations in the state.
The IHK said the situation for Saarland companies remains uncertain
amid fears that export deliveries would become more expensive if
commercial rates were stamped on products after Brexit.The figure shows that some companies have already partially withdrawn from the UK market, but sales and exports are also falling due to exchange rates.
Britain has been the Saar's most important trading partner since 2012 and last year only goods worth more than £ 2billion were shipped to the UK.Angela Merkel's Economy Minister Brigitte Zypries admitted that Germany would experience trade difficulties because of Brexit but said Britain would suffer more than the remaining 27 EU members when it leaves the bloc.
Zypries said: "I hope we have problems with trade, but it will not be as difficult for Europe as for Britain."The minister spoke as she handed over the German government's revised growth forecasts to a conference in Berlin.
Germany is taking an increasingly pessimistic view of its post-Brexit economy.
The Federation of German Industries (BDI) has warned German companies operating in the UK to prepare for a "very tough" Brexit and told its members to take precautions or be prepared to face heavy economic losses.BDI Managing Director Joachim Lang stressed the importance for the German industry of ensuring a smooth transition possible, underlining that Britain remains one of the nation's most important trading partners.
German companies export £ 75.8bn of goods to Britain every year and German companies employ about 400,000 workers in the United Kingdom.
Mr. Lang said: "The separation of one of Germany's closest allies is inevitably linked to high economic losses.
"The German economy is preparing for all possible scenarios.
"A disorderly departure of the British from the EU without any follow-up control would lead to considerable agitation for all participants."
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