A GERMAN bank has predicted Britain leaving the EU will cost the German economy almost £35BILLION - plunging the country into financial disrepair.By Rebecca Perring
The future of German companies will be thrown into doubt in the event of Britain freeing itself from the shackles of Brussels as 2,500 businesses have branches across the UK.
As Remain and Leave camps drum up support for their campaigns here in the UK, DZ Bank says Brexit would cost the Germany economy £34.8bn by 2017 alone and the country could fall into recession.
German experts predicted Britain leaving Europe would act as a “slow poison” to their countries economy.
Meanwhile, the UK is also said to be an important export market – in 2015 Germany exported goods of a value of £70bn to Britain.
Markus Kerber, CEO of Bundesverbandes der Deutschen Industrie (BDI-federal association of German industry) warned a negotiation process, in the event of Britain severing ties with the EU, would take years.
He said: “I believe the damage caused by Brexit would be big for both sides.
“A fierce competition will ensue.”
Mr Kerber warned companies would be competing against each other to access market and regulatory standards if Britain opts to Leave the 28-member bloc.
More than 2,500 German companies have branches in the UK, while around 3,000 British companies have branches in Germany.
Ahead of the UK are only USA, China and France who are serving Germany as export countries.
Meanwhile the CEO of German Stock Exchange DAX said Brexit would lead to distortion, despite it being unclear whether it will have trade benefits and new regulations for goods, human resources and profits.
In Germany it is also feared a withdrawal will lead to more expenditure, more bureaucracy, higher costs, worse access to trade market.
But there is one business sector that would definitely profit from Brexit - advisors and solicitors would have to prepare companies for the new market and could be included to charge a lot of money for their advice.
The intervention comes as no surprise after sources close to German Chancellor Angela Merkel revealed she had branded the EU referendum as an unnecessary risk.
Mrs Merkel privately said Britain backing Brexit would be the “ultimate disaster” but has chosen to remain quiet so as not to infuriate Remain campaigners.