German industry warned that Europe risks sinking into chaos and trade will collapse if UK and European Union leaders fail to resolve their differences on the future of Britain’s relationship with the bloc, stepping up pressure amid a final push for a deal.
“The next EU summit in two weeks must bring a breakthrough in the talks,” Joachim Lang, managing director of Germany’s powerful BDI industrial lobby, said Tuesday at a press conference in Berlin. “Otherwise, Europe is in danger of sliding into a disorderly Brexit. The result would be a massive crisis.”
The fallout of a no-deal Brexit could cause German exports to the U.K. to tumble as much as 57 percent as tariffs and customs barriers impede trade, the IW economic institute in Cologne said in a study published Tuesday. Industries that would be particularly hard hit include logistics, autos, aerospace, pharmaceuticals and chemicals, according to the BDI.
‘Horror Scenario’
“This horror scenario should push policy makers into constructive action,” Markus Jung, an IW researcher, said in the report. [...]
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IW study: If Nothing is Achieved: Who Pays for the Brexit?
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