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13 March 2019

Bloomberg: Brexit uncertainty ‘devastating’ UK’s economic relations


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Brexit-related uncertainty is “devastating” the U.K.’s economic relations with European partners and many buyers of British goods are actively looking for alternative sources of supply, according to a leading German business lobby.


Companies in Europe’s biggest economy currently won’t sign sign long-term delivery contracts with British partners and are stocking up on goods wherever possible, Holger Bingmann, president of Germany’s BGA association of exporters and wholesalers, said in an emailed response to Bloomberg.

“There is an unbelievable amount of uncertainty, as fundamental questions on customs documentation or product registration have not been resolved,” Bingmann said. “Even British firms are asking our members how they should deal with the situation.”

The warnings from German business highlight the damage the wrangling over Brexit is causing economic activity. After rejecting Prime Minister Theresa May’s deal, lawmakers will decide later Wednesday whether to take Britain out of the European Union with no agreement in place in 16 days’ time, or delay Brexit in a bid to secure better terms.

German Economy Minister Peter Altmaier sounded a more upbeat tone, suggesting the rejection by lawmakers of a no-deal Brexit later on Wednesday would be an opportunity to “unite millions in the U.K. and Europe” and “create hope and solidarity.”“Rejecting the Brexit deal jeopardizes the well-being of citizens and the economy in a negligent way,” German Foreign Minister Heiko Maas said after Tuesday’s vote in London. “Unfortunately, I can only say at this point that Germany has also prepared itself in the best possible way for the worst-case scenario.”

“Whatever you finally decide, good luck dear friends,” Altmaier wrote in a Tweet. [...]

Full article on Bloomberg



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