Hundreds of German companies call for EU help as Brexit fears bite
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Hundreds of German companies have appealed for more direct support from Brussels and a business-friendly stance from EU lawmakers as they grapple with the effects of Brexit, the US-China trade war and a global economic slowdown.
Responding to a poll by the Stiftung Familienunternehmen, or Foundation for Family Businesses, some of the country’s most successful companies said the new European Commission must do more to boost competitiveness. They placed emphasis on simplifying taxes, reducing bureaucracy and deeper digital integration.
In contrast, a study on Friday by KFW, the German development bank, found that 15 per cent of Mittelstand firms — mostly legal, tax and business services providers — could actually benefit from a hard Brexit. They cited the prospect of rivals in the UK losing their competitive advantage, as well as the potential increase in the need for professional assistance from companies forced to reorganise their businesses.
Among the more than 1,400 companies surveyed was Otto Fuchs, a 110-year-old family-owned business that supplies non-steel metal parts to the likes of Airbus, BMW and Jaguar Land Rover, and claims to manufacture components for “every plane that flies”.
“We’re in turmoil right now, and the problem is that Europe is not standing together,” said chief executive Hinrich Mählmann, whose company also makes wheels for Minis assembled in the UK. “The UK market is the largest car market in Europe after Germany, and if that continues to decline, it would harm everybody,” he added, as he urged Brussels “to work on a fair Brexit deal”.
