Brexit affects companies less – and competition is intensifying

Glunz also points out that trade flows and direct investment have also grown positively for the first time in six years. Earlier in the year, he bemoaned the “disruptions” Brexit had left on German-British trade.

By reaching an agreement with the European Union on the Northern Ireland dispute in March, the British government, led by Prime Minister Rishi Sunak, removed a major obstacle to rapprochement with continental Europeans. BCCG chairman Michael Schmidt says Sunak’s “policy of practice” has restored confidence and made people forget the sometimes aggressive and chaotic actions of his predecessors Boris Johnson and Liz Truss. Also the visit of King Charles III to improve the climate. Contributed in Germany.

The trade deal with the EU is to be improved

For Britons, the poll results are a welcome ray of hope after many foreign companies expressed doubts about Great Britain’s whereabouts last week. For example, carmaker Stellandis threatened to close a plant in Ellesmere Port unless Brussels and London change post-Brexit rules for electric vehicles built in Great Britain. Japanese manufacturer Nissan has also questioned its UK manufacturing base.

It is politically interesting that both Prime Minister Chung and Opposition Leader Keir Starmer are pushing to improve the Trade and Cooperation Agreement with the EU to their mutual benefit. “This shows a practical consolidation trend, which should not change even after a possible change of government after the upcoming parliamentary elections,” KPMG partner Kluns suspects.

However, there are still areas of friction between London and Brussels. The British are currently fighting to win a contract for a new battery factory that India’s Tata Group wants to build in Europe. EU member Spain is also competing. According to reports in the British media, the government in London has pledged 500 million pounds (570 million euros) in aid to the Indian government. Tata is the parent company of the largest British carmaker, Jaguar Land Rover (JLR), which is currently in the process of transitioning its model range to electric drives.

Competition for space with the European Union has also intensified in semiconductor manufacturing. The British government has just announced that it will subsidize around one billion pounds of chip development in Great Britain over the next ten years..

“Our new strategy focuses our efforts on areas where we are strong, such as research and design,” Sunak said. The opposition Labor Party thinks this is not enough and points out that the US wants to support its chip location with 52 billion dollars, while the European Union has made 43 billion euros available.

Great Britain attracts with less restrictions

Although Great Britain has suffered as a business destination as a result of Brexit, it apparently has not lost its allure: a quarter of companies surveyed by KPMG consider the island’s economic environment better than the EU or Germany – and many appreciate less regulation by the government. “Due to less regulation, Biontech has moved some of its research to Great Britain,” says Kluns. The British will now take advantage of the fact that they no longer have to comply with EU law.

However, being hailed by conservatives in London as a “Brexit dividend” is a double-edged sword. “If the gap between Great Britain and the EU widens on environmental, consumer or tax law, this could lead to new friction with Brussels,” warns BCCG boss Schmidt.

Sometimes, however, Brexiteers promise more than they can keep: recently, the British Minister for Economic Affairs, Chemi Patenoch, had to postpone the timetable for removing all old EU rules on the island due to bureaucratic overload.

Further: Brexit rules are becoming a competitive disadvantage for European car manufacturers