Hard Brexit will cost German companies too: BDI

Credit: Reuters Studio
Published 1 week ago - Duration: 01:47s

German industry warns against a no deal Brexit as talks about the Irish border in Brussels hit a barrier.

Meanwhile the Bank of England Governor issues another warning about the impact of Brexit on financial services.

Laura Frykberg reports.

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Hard Brexit will cost German companies too: BDI

With a bombardment of warnings from businesses against a hard Brexit from inside the UK... It's easy to forget that firms across the channel are on edge too.

Germany's BDI industry association making it clear exactly why.

(SOUNDBITE) (German) BDI INDUSTRY ASSOCIATION MANAGING DIRECTOR JOACHIM LANG, SAYING: "If it were to come to this on March 29, 2019 it would be a disaster.

It would cause huge difficulties for tens of thousands of companies and hundreds of thousands of employees in Britain and the European Union." Germany's IW economic institute is also ringing alarm bells.

Saying a hard Brexit would result in extra tariffs of more than $3.4 billion for German companies each year.

And that German exports to Britain could drop by up to 57 percent.

(SOUNDBITE) (English) GARRY WHITE, CHIEF INVESTMENT COMMENTATOR AT CHARLES STANLEY, SAYING: "It ain't over till it's over and it's often darkest just before dawn, so hopefully we'll get some sort of deal done in the next few months.

The markets certainly believe a deal will be done and there won't be a no deal Brexit and I'm optimistic about that too." But crucial sticking points remain.

Such as the fate of the Irish border.

The UK's only link by land to the bloc.

Northern Ireland's DUP leader - which props up the UK government - still refuses to consider an EU proposal for port checks between Northern Ireland and the British mainland... as a solution to the land border problem with the Republic of Ireland.

(SOUNDBITE) (English) DEMOCRATIC UNIONIST PARTY LEADER, ARLENE FOSTER, SAYING: "We've always said that there's only one red line in these matters and that's when we are treated differently from the rest of the United Kingdom, in terms of customs, in terms of regulatory alignment.

And that's to protect not just the constitution of the United Kingdom, but also the economy of Northern Ireland." The BOE governor has also weighed into the debate again warning the EU has not done enough to protect cross-border financial services as a cliff edge Brexit gets ever closer.

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