100,000 jobs at risk in Germany from ‘no deal’ Brexit

100,000 jobs at risk in Germany from 'no deal' Brexit

An influential economic research centre has warned that 100,000 jobs could be put at risk in Germany if the UK leaves the EU without securing a deal. 

The study by the Halle Institute for Economic Research found that jobs in the car industry would be particularly vulnerable to the uncertainties created by Britain tumbling out of the EU without securing a favourable trading relationship.

Export giant Germany sold 770,00 vehicles to the UK in 2017 and 15,000 jobs in its automobile sector are reliant on this huge level of trade.

The study estimates that Wolfsburg, hometown of Volkswagen, would be hit hardest by a collapse in exports that would result from a no-deal exit.

Some 500 jobs, or roughly 0.4 per cent of the Wolfsburg workforce, would be threatened. Dingolfing in Bavaria, which is heavily reliant on jobs provided by luxury carmaker BMW, would face a similar risk to jobs.

The simulations used by the researchers found that industries far beyond carmaking would be hurt by a disorderly Brexit.

Germany’s renowned Mittelstand, medium-sized companies that form the backbone of the economy, is particularly exposed to the storms of a no-deal scenario as these firms are often export leaders in niche technologies.

Source link