What Is A No-Deal Brexit?
A No-Deal Brexit means that the United Kingdom would leave the EU without any agreements on their future relationships. Not every parliamentarian supports the idea of a No-Deal Brexit, but this could very well be the outcome assuming no agreements can be reached. The UK’s exit from the EU would affect both citizen jobs and other markets in the rest of the European countries.
No-Deal Brexit And German Jobs:
Although many countries in the EU would suffer from a no deal Brexit, Germany would be affected the most. In particular, Germany would be majorly affected by the decrease in United Kingdom imports / German exports.
A no deal Brexit means that the UK wouldn’t be bound to follow any trade agreements currently in place with other European nations. In effect, all bilateral or unilateral trade agreements could be canceled. This would decrease the UK’s overall imports by 25%, and affect around 100,000 German jobs.
Germany’s automotive manufacturing sector would be seriously affected by this sudden change and could cause the termination of at least 15,000 jobs linked to UK imports.
Impact On German Businesses:
A no-deal Brexit would be harsh for many sectors of the German economy. Unfortunately many German businesses have already been affected by the uncertainty over the future of the European Union. Many businesses in Germany directly or indirectly export their products to the UK. While both countries are members of the EU, importing and exporting of goods is seamless and fast. But Brexit could slow things down and increased trade costs, especially if there is no trade deal signed before Brexit is executed.
While politicians argue over different proposed ways to facilitate the UK's exit, the uncertainty continues to impact the performance of the German businesses that export their products to the UK. Most of the top German manufacturers say that they are trying to prepare themselves for the worst-case scenario.
Germany’s government officials and especially the finance minister are constantly in touch with the British authorities to discuss the impact of a no-deal Brexit on Germany and prepare themselves for what's to come.
Is Germany Ready:
This is probably the biggest question of all. No matter what the outcome of Brexit is, Germany will have to prepare itself for the consequences. So far, they’re not ready.
Meanwhile, the government is trying to educate small and medium business owners to make them more aware of the consequences and how they can prevent big losses. However, there is no specific platform or regulation that has been made to assist business owners, and that is alarming.
Many seasoned politicians and reputable public figures are saying that Germany is not prepared to face the consequences of a no-deal Brexit. Hopefully the country can better prepare itself before the October deadline.