German economy panics as Brexit hits industry with crippling costs – supply chain squeezed | Politics | New


According to the German-British Chamber of Commerce and Industry, Brexit will have a profound impact on the German economy. Ulrich Hoppe, head of the German-British Chamber of Commerce and Industry in London, told German news agency DPA: “It is not yet clear when the supply chains will perform as well as before the 31st. December 2020.

“That’s why many companies have invested in longer-term storage capacity, among other things. “

Mr Hoppe said the economy was nevertheless adjusting to the new challenges.

He added: “But it will take longer than expected for the systems to function properly.”

He praised the fact that the Brexit trade deal between the UK and the EU had “provided some security”.

He said: “If such an agreement had not been reached, there would have been more massive upheavals, not just in commercial transactions.”

The UK also left the EU customs union and the internal market on January 1.

Since then there have been delivery issues due to new regulations and formalities.

In some industries there are new tariffs despite the agreement.

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Above all, the automotive industry, which depends on international supply and value chains, but also the food industry with perishable goods and hygiene rules are severely affected by Brexit, as Mr Hoppe said .

He continued, “The new visa regulations also entail tremendous additional work for all companies that send international employees or depend on international talent.”

The UK and the EU have opposed a diplomatic row over the implementation of the Northern Ireland Protocol, included in the Brexit deal.

The UK has requested an extension of a grace period allowing chilled meats to continue to ship from Britain to Northern Ireland after the end of this month, when the current arrangements are due to expire.

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Irish Prime Minister Micheal Martin said he had no doubts the EU’s willingness to “reach a compromise” on the protocol.

However, he said the UK must be prepared to engage in the process and follow through on commitments already made.

Speaking at the European Council summit in Brussels on Friday, he said: “An agreement can be found.

“It will take political will and commitment.

“I have absolutely no doubts about the commitment of the European Union as an institution, but also of the members and key members of the European Union, and of their willingness to reach a compromise here with regard to the implementation of the Withdrawal Agreement and Protocol.

“There is a willingness to be pragmatic and flexible on this, but the UK government needs to get involved in the process.

“My last meeting with Boris Johnson, it was clear that he would give a really hard push to try to come to an agreement.

“I have no doubt that the will is there on the EU side. The EU needs reciprocity, it needs the UK’s sense that it will honor its commitments to which it has subscribed and that it will keep its promises. commitments. “

Additional reporting by Monika Pallenberg


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