Brexit: Germany and EU to lost thousands of jobs if there is no deal with UK, claims MEP | City & Business | Finance

Hans-Olaf Henkel is former President of the Federation of German Industries, BDI, (roughly the equivalent of the British CBI).

He claims that while people are “realising the disadvantages of Brexit”, political leaders on the continent think it is only going to cause problems in the UK.

But, the German economist warns that it will also negatively impact the continent too.

He said: “It is so obvious, Brexit will result in a lose-lose situation for both, Britain and the EU.

“To negotiate a trade agreement with a new partner like Canada or Japan is one thing, but to disentangle trade relationships of thousands of companies which have grown over 40 years is quite another.

“Existing complex logistic chains, supplier and customer relationships would be suffering from Brexit, regardless whether soft or hard Brexit, with and without longer adjustment periods.”

Mr Henkel cites a study from consulting firm Deloitte that sales of carmakers in the Single Market will decrease by 20 per cent in the case of Brexit.

According to the study, sales losses will drop to the level of the financial crisis in 2008 in the case of a hard Brexit.

The study also reports that 60,000 jobs in Germany’s car industry are dependent on these exports and 18,000 of these jobs are endangered by a hard Brexit.

The main reason for this loss would be the price collapse of the British pound, which leads to an increase in German car prices in the UK.

Cars made in Germany could become 21 per cent more expensive in the UK after a hard Brexit, according to the study.

He added: “We appeal to all responsible politicians in Britain as well as on the continent to help avoid that two high-speed trains are running towards each other on the same track.

“Together with the significant negative impact of Brexit on the remaining 27 countries, justifies the EU offering Britain a deal which avoids a tragedy of historical dimensions.”

According to Henkel, there will also be thousands of new jobs in Frankfurt because of Brexit.

It is based on research at the Private Business School for Economics & Management who published a study regarding the consequences of Brexit for Frankfurt and its region.

The study suggests that within the next four years 10,000 new jobs in Frankfurt’s financial sector will be created because of Brexit and its subsequent migration of international financial institutions.

But the German MEP said the potential of Germany getting financial jobs in Frankfurt from the loss of London after Brexit obscures the fact that there will be tens of thousands of jobs at stake not only in Britain but also on the continent.

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