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Germany's industrial leaders gear up for no-deal Brexit scenario


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Germany's industrial leaders gear up for no-deal Brexit scenario

Business leaders in Germany said companies will start implementing plans for a no-deal Brexit if negotiators are unable to reach an agreement by mid-November, as they urged the U.K. government to soften its position in the talks, the Financial Times reported Sept. 2.

"The time that remains is incredibly short," Joachim Lang, director-general of The Federation of German Industries, told the FT. "If there is no agreement by mid-November, German companies will start implementing their emergency plans for a no-deal Brexit."

Negotiators from the U.K. and the European Union said week of Aug. 27 that reaching a withdrawal agreement by October was unlikely, pushing back the target date for a deal to mid-November.

In a no-deal situation, there would be interruptions in the supply chains, which would adversely affect the U.K. industrial base, Lang said.

The U.K.'s proposal for free movement of goods in the EU while excluding the free movement of services, capital and people was also a point of concern. Lang said separating goods from services and the flow of people and finance was not possible.

"We have a coherent market for goods, services, capital and people - a whole ecosystem that has grown over decades," Mattes said in an interview with the Frankfurter Allgemeine Zeitung, the FT reported. "You cannot play with this by picking out parts."