PROSPECTS of a Hard Brexit are terrifying German businesses who are increasingly panicked over losing access to the British market - with the head of a business association urging Brussels' negotiating team “the clock is ticking louder”.
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| Germany news: The UK is one of the largest economic partners of Berlin |
Jan Eder, the director of the Berlin’s Chamber of Commerce and Industry (IHK) said it is “highly regrettable” that the Brexit negotiations are stalling.
He added: "There aren't even 250 days left in the countdown to the end of March 2019 and we are still facing a completely open negotiation result.
“That leaves many questions open for companies that are economically linked to the UK.”
German businesses fear a hard Brexit as it would make harder for them to access the highly profitable British market, with the UK being one of the largest economic partners of Berlin.
Last year alone, Berlin companies imported goods worth some £475.61 million (€532m) and exported £575.74m (€644m).
The largest groups of goods leaving Berlin for the UK include chemicals, vehicles and food.
One of the city's biggest food exporters, frozen pizza maker Freiberger, has been producing in an English factory since 2003.
The company fears supply shortages in case of a hard Brexit, which would cost millions more in importing the dough from Europe to Britain, both on duties and time-consuming import controls.
Berlin companies like Freiberger are also afraid of the additional bureaucratic burden which would come with closed borders, including filling in additional import documents.
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| Germany news: Berlin's companies are afraid of the additional bureaucratic burdens |
Martina von Mesterhazy, coordinator of customs advice and foreign trade documents at IHK, said: "We expect that in Berlin alone about half a million additional customs papers will be issued each year.”
She also warned about longer transport time, saying: “When all the trucks have to be cleared, waiting times at the borders will lengthen accordingly, affecting production and trade.”
Because of the new obstacles that would arise with a hard Brexit, companies are putting under scrutiny every financial, personnel, sales, and personnel policy aspect to find cost-effective solutions.
The Berlin-Brandenburg business association (UVB), Christian Amsinck, added, to highlight the urgency of finding a solution: "The clock is ticking louder.”
The Berlin concert promoter DEAG is one of the businesses that could be hit harder by a Brexit with a subsequent economic crisis on the island.
More than half of DEAG's sales were made in the UK this year.
But DEAG Board Detlef Cornet, who has been responsible for the business since 2014 in the UK, is still optimistic.
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| Germany news: Berlin companies exported to the UK goods worth some £575.74 million in 2017 |
Speaking about the numerous concerts and events that take place every year under the DEAG flag in the UK, he said: "In times of crisis, people may forego a new washing machine, but there is often still money for small things that make you happy.”
But he didn’t hide his worries over productions that the group is bringing from the island to mainland Europe, as effects were not predictable for music tours that bring bands across the continent by trucks.
But he argued delays at the border and problems with work permit would surely arise.
He said: "A Brexit without a concrete negotiation result would be bad. But I hope there will be a reasonable solution for large parts.”
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