BDI urges Brussels and Germany to focus on ‘necessary emergency measures’ against the fallout of a no-deal scenario.
Germany’s major business lobby BDI issued a stark Brexit warning today by saying that a failure of EU-U.K. negotiations is the most likely scenario, and urging the EU to focus all attention on the “necessary emergency measures.”
Negotiations for a future relationship agreement have made very modest progress so far. After the latest round of talks ended Thursday, U.K. chief negotiator David Frost and his EU counterpart Michel Barnier conceded that they would miss the July target to agree an outline of a deal, as “considerable gaps remain” between the two sides.
In a statement, BDI Director General Joachim Lang called the outcome of the latest round ” more than a disappointment” and added: “Failure of the negotiations for a partnership agreement is now as good as inevitable. Too many political and technical issues are still outstanding for them to be resolved in time.”
Lang said that both the EU and the German government, which currently holds the presidency of the Council of the EU, must now “join forces and focus all their attention on the necessary emergency measures” to protect themselves from the fallout of a no-deal scenario.
He argued that companies on both sides of the Channel must now prepare for future trade relations based on World Trade Organization terms, which means for example a 10 percent tariff on cars.
Lang also delivered a grim assessment of the U.K.’s preparedness for leaving the EU single market at the end of this year, when the Brexit transition period runs out.
“German industry does not expect the U.K. to complete the public infrastructure for cross-border trade in time,” he said. “The latest British plans are incomplete. This threatens companies with new customs duties, additional bureaucracy and economic disaster.”
Source: POLITICO https://www.politico.eu/article/failure-of-brexit-talks-as-good-as-inevitable-says-german-business-lobby/?utm_source=RSS_Feed&utm_medium=RSS&utm_campaign=RSS_Syndication