Officials in Germany’s economic powerhouse state of Hesse – home to significant industry and the major financial centre of Frankfurt – say Brexit has had no negative effect on business. Prof. Mathias Mueller, President of the Frankfurt Chamber of Commerce and Industry, explained:
“Exports to the UK totalled 4.1 billion euros in 2017, which was 6.5 percent of Hessen’s exports… The sectors most affected include automobiles and automotive parts, since many Vauxhall automobiles sold in the UK are essentially “Made in Hessen”. Traditionally important export goods from Hessen are also chemical and pharmaceutical products as well as electro-technical products.”
“Many local companies have also invested in the UK. According to statistics of the German Bundesbank, Hessen’s direct investment in the UK amounts to nearly 21 billion euros. Hessian companies employ 39,000 people in the UK. Conversely, British companies in Hessen employ as many as 60,000…
“Business is running as usual, a ”Brexit shock” has not occurred and most companies are so experienced in international trade that they can deal with problems such as customs clearance, different national licensing processes, site-specific legal norms and the like. In general, the issues confronting companies with Brexit are nothing new.”
Meanwhile, a nationwide poll by the German Chambers of Commerce and Industry found that even if the framework conditions for future business are not yet clear, companies that are invested in the UK will stand by their commitments. More than 91% of companies replied to the question of possible relocations away from the UK with “no”. Look forward to seeing this reported in the FT…
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