They’re preparing now; We need to be preparing now
On Thursday, 5th October 2017, the head of Germany’s powerful BDI industry federation warned companies to prepare for a “very hard Brexit”, pointing to persistent infighting in London over what Britain wants from EU exit talks.
“German firms must prepare for the worst-case scenario of a very hard exit, anything else would be naive,” BDI chief Joachim Lang said in a statement.
Britain’s governing Conservative party is “at odds” with itself on Brexit strategy, leaving the outcome “completely open” in London-Brussels talks set to end in March 2019, the statement said.
“Whatever kind of Brexit there is, it will bring a significant number of legal, economic and business problems with it,” Lang said.
The industry federation is making its own preparations, with a taskforce split into 10 teams hoping to head off “potential and acute dangers” for future trade between the two countries, he said.
What actions should UK businesses be taking?
Preparing for a few eventualities will clearly be a very good idea, and right now would be a very good time to start. Whilst there is talk of a transition period there is no guarantee that will happen; and if negotiations sour, a sudden, hard Brexit will be much more likely.
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Mistral Associates’ Business Health Check is a very good place to start, with a full and proper check of your business. The Business Health Check gives you a solid heads-up about your business and any hidden weaknesses so you can make informed decisions about your next steps. For added benefit, it’s FIXED PRICE.
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Financial Info:
According to figures published by the country’s central bank, the Bundesbank:
Germany exported 116 billion euros ($136.2 billion) of goods and services to Britain in 2016
Germany imported 60 billion euros from Britain,
German companies employ around 400,000 people in Britain.
Carmakers and other industries have warned that new barriers to trade — from customs levies to regulatory differences — could disrupt EU-spanning supply chains that see goods and components cross national borders multiple times before reaching buyers.
