Brexit hanging party: German economy calls for "clear edge" against British

United Kingdom and Gibraltar European Union membership referendum

all articles

For the German companies, a clear and united attitude of the 27 EU member states is more important than further concessions to the willing British. According to a survey by the Association of German Chambers of Industry and Commerce (DIHK), 85 percent of companies believe that the most important thing is the cohesion of the EU and the preservation of the EU single market.

These are unlikely to be jeopardized by a Brexit deal - even if one's own trade with the UK is damaged. "From the perspective of local companies, the expectation is clear: the EU must continue to show a clear edge," said DIHK President Eric Schweitzer.

"The United Kingdom is becoming more and more unattractive as a business partner with each passing day delay," said Schweitzer. According to a recent DIHK survey, 70 percent of UK-based businesses expect business to worsen.

Internal market shrinking

Without agreement on the exit agreement, companies lack the perspective of how to align their business between the UK and the mainland in the future. The United Kingdom leaves the EU, the sluggish development of the European economy is likely to continue in the DIHK: the domestic market would shrink from 513 million inhabitants to 446, reduce the gross domestic product from 15.4 to 13 trillion euros.

"If the EU countries currently still divide 64 percent of their global trade among themselves, it will still be 60 percent after Brexit," said Schweitzer. But there is no doubt for the German economy: "Brussels must defend the four freedoms of the internal market in the Brexit negotiations." The four freedoms are: free movement of persons, free exchange of goods, services and capital.

British retailers surprised

In the meantime, the balance sheet of the British retail sector has turned out better than expected: according to the British statistics office ONS, sales rose 0.4 percent month-on-month. By contrast, analysts had expected a decline of 0.4 percent on average. Compared to the same month of the previous year, sales increased by four percent in February. That too was stronger than expected.