Report: German economic consensus on “ill-fated” Brexit

BERLIN, June 21 (KUNA) — The consensus amongst Germany’s entire economic spectrum is that Britain’s potential withdrawal from the European Union (EU), referred to as “Brexit”, would be ill-fated and prove detrimental to Europe.
For weeks, economic contingents have warned that Brexit could result in serious ramifications that would be disastrous to even Europe’s most robust economies, as commercial trade and German exports to Britain will be severely disrupted.
Speaking at a press conference on Monday, BGA Trade Federation President Anton Boerner said that “Brexit would mean instability and loss of trust not only in Britain’s economy, but the economies of all European nations.” Moreover, Boerner noted that if “Britons favor an EU exit, it would set in motion a departure process that would last two years until mid-2018, which would usher in a period of instability in EU member nations.” Meanwhile, addressing potential ill effects on commercial ties between Britain and Germany in the event of a Brexit, Boerner said that “Britain is very instrumental to the growth of the German economy, and a Brexit would be calamitous to these ties.” The Association of German Chambers of Commerce and Industry (DIHK), one of the biggest proponents of Britain remaining in the EU, said on its website that “Germany’s entire economy will be hard hit by Brexit,” adding that “750 thousand job opportunities will be threatened in the event Brexit takes place.” Similarly, DIHK General Manager Martin Wansleben said that “Britain is the third largest importer of German goods and a number of German companies in Britain will be adversely affected in the event of a Brexit,” adding that “the future of Britain is of upmost significance to Germany.” The DIHK General Manager also revealed that “there are 200 thousand German employees that work in British companies in Germany, and Brexit would impede German investment.” In statements on its website, the British Chamber of Commerce in Germany (DEHOGA) pinpointed the German automobile industry as amongst those hardest hit by a Brexit, describing the industry as “one of the pillars of the European economy.” “The automobile industry will bear the brunt of disastrous effects caused by a Brexit, which also includes Germany’s financial sectors,” the statement said. It also warned that Brexit could spark a “chain of EU exits from other nations as well.” On the financial end, the IFO Institute for Economic Research also warned of serious repercussions if Brexit takes place. “If Britain votes to leave the EU, it will cause volatility to the global stock exchange out of concerns of the future of ties between the EU and Britain.” On June 23, Britain will hold a highly anticipated referendum to decide whether the country should leave or remain in the EU. The result of the vote is expected to alter the course of not only Britain’s future but the entire EU’s as well. (end) anj.nam