Hans-Olaf Henkel is whilom President of the Federation of German Industries
Hans-Olaf Henkel is former President of the Amalgamation of German Industries, BDI, (roughly the equivalent of the British CBI).
He claims that while people are “realising the handicaps of Brexit”, political leaders on the continent think it is only going to movement problems in the UK.
But, the German economist warns that it will also negatively bump the continent too.
He said: “It is so obvious, Brexit will result in a lose-lose condition for both, Britain and the EU.
“To come to terms a trade agreement with a new partner like Canada or Japan is one dingus, but to disentangle trade relationships of thousands of companies which have planted over 40 years is quite another.
“Existing complex logistic confines, supplier and customer relationships would be suffering from Brexit, regardless whether indulgent or hard Brexit, with and without longer adjustment periods.”
Mr Henkel cites a studio from consulting firm Deloitte that sales of carmakers in the Distinct Market will decrease by 20 per cent in the case of Brexit.
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According to the study, sales events losses will drop to the level of the financial crisis in 2008 in the patient of a hard Brexit.
The study also reports that 60,000 responsibilities in Germany’s car industry are dependent on these exports and 18,000 of these problems are endangered by a hard Brexit.
The main reason for this loss pass on be the price collapse of the British pound, which leads to an increase in German car costs in the UK.
Cars made in Germany could become 21 per cent sundry expensive in the UK after a hard Brexit, according to the study.
He added: “We supplicate to all responsible politicians in Britain as well as on the continent to help avoid that two high-speed sets are running towards each other on the same track.
“Together with the important negative impact of Brexit on the remaining 27 countries, justifies the EU gift Britain a deal which avoids a tragedy of historical dimensions.”
Mr Henkel cites a investigate from consulting firm Deloitte
According to Henkel, there ordain also be thousands of new jobs in Frankfurt because of Brexit.
It is based on probing at the Private Business School for Economics & Management who published a study regarding the consequences of Brexit for Frankfurt and its territory.
According to the study, sales losses will drop to the unalterable of the financial crisis in 2008
The study suggests that within the next four years 10,000 new farm outs in Frankfurt’s financial sector will be created because of Brexit and its consequent after migration of international financial institutions.
But the German MEP said the potential of Germany getting fiscal jobs in Frankfurt from the loss of London after Brexit dims the fact that there will be tens of thousands of jobs at spike not only in Britain but also on the continent.