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DPA Translated by
Barbara Santamaria Published
May 16, 2025
Many German companies are concerned about the UK’s exit from the EU and expect it to have a major impact on German economy, according to new research. The majority of German companies are preparing to scale back investment in Britain, but Germany could also see investments decline as an indirect consequence, found a new report from consulting firm Deloitte.
Declining bilateral trade and exchange rate fluctuations were also cited by companies included in the survey as serious threats. Further, a fifth of companies expect consumer confidence in Germany to deteriorate due to Brexit.
“Brexit is already casting its shadow. Nearly two thirds of companies are now dealing with it,” said Alexander Börsch, chief economist and head of research at Deloitte. “This is clearly more than a year ago, when only a third of companies had drafted a contingency plan.”
But the companies surveyed also see opportunities, such as the potential strengthening of Germany’s financial centre. With Frankfurt poised to lure banks from London, the city is likely to be one of Brexit’s winners. Munich as a tech hub and Berlin as a start-up paradise could also benefit from the divorce.
Many companies consider the free movement of people as essential for Britain’s single market membership. Almost half of the companies think that the UK should be excluded from the single market if the four fundamental freedoms are not guaranteed. Meanwhile, a quarter of companies would still trade under single market conditions with the UK in case of restricted freedoms.