German Industry Chief Says Hard Brexit Probabilities Rise Everyday

August 27, 2018 Share Print 0

Many businesses in Germany are still hoping the UK reverses its decision to leave the EU, according to one of the country’s top business leaders, who also warned of the dangers of a hard Brexit.

“The risk of a hard Brexit is growing by the day,” said Joachim Lang, the head of the Federation of German Industries (BDI), in a wide-ranging interview with the Rheinische Post newspaper. “Every business would do well to prepare for this worst-case scenario.”

German businesseshad been unsettled by the British government’s recent warnings, he said. “What’s new is that the British government itself is now warning about the possibility of a hard Brexit It is carefully preparing its population for that.”

The BDI , which describes itself as the voice of German industry, has set up a Brexit taskforce of more than 200 experts to assess the risks.

“We suspect that the effects of a hard Brexit will be considerably more serious than the British government is currently telling its citizens,” said Lang. “And above all, in Britain itself. The British have already gone from a growth engine to the worst performers in Europe.”

via The Guardian

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.