'Chaotic' Brexit May Hinder German Economic Growth In 2019 - Federation Of Industries

President of the Federation of German Industries (BDI) Dieter Kempf has expressed fear that a "chaotic" no-deal Brexit, which now looks more and more probable following the UK parliament's rejection of the latest divorce agreement, could negatively affect Germany's economic growth this year because it may lead to a slump in UK-Germany trade

MOSCOW (UrduPoint News / Sputnik - 17th January, 2019) President of the Federation of German Industries (BDI) Dieter Kempf has expressed fear that a "chaotic" no-deal Brexit, which now looks more and more probable following the UK parliament's rejection of the latest divorce agreement, could negatively affect Germany's economic growth this year because it may lead to a slump in UK-Germany trade.

On Tuesday, the Brexit deal, which UK Prime Minister Theresa May presented to the country after months of talks with EU leaders, suffered a crushing defeat in parliament, where it was rejected in a 432-202 vote. The outcome of the vote has not only increased the probability of a no-deal Brexit but also prompted a second motion of no confidence in the government, which May won by a narrow margin.

"The rejection of the withdrawal agreement is alarming. Businesses on both this side and the other side of the English Channel continue to be left hanging in mid-air. A chaotic Brexit is drawing dangerously closer ... Our companies are unable to prepare themselves in the manner required just a few weeks ahead of the withdrawal date," Kempf said as quoted by the BDI's official website late on Wednesday.

Kempf warned that a no-deal Brexit might have a negative impact on the two countries' trade, which currently amounts to over 175 billion Euros ($199 million), that could entail a recession in both in the UK and German economies.

"An immediate and sweeping recession looms over the British economy that will not pass Germany by unnoticed ... Our companies have invested in the United Kingdom to the tune of around 120 billion euros and considerably more than 2,000 stake holdings. Any lack of clarity would jeopardise tens of thousands of businesses and hundreds of thousands of jobs in Germany, and more particularly in the United Kingdom," the BDI president said.

May now has just 10 weeks left to try and work out a new plan of action before the country is set to exit the European Union on March 29. Meanwhile, leader of the UK opposition Labour Party Jeremy Corbyn has urged the prime minister to pledge that the UK government will not settle for a no-deal Brexit.