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Economy in Great Britain: German companies are feeling the effects of Brexit

2021-12-22T06:18:41.651Z

Many German companies report of trade barriers and the preference for domestic competitors in Great Britain. The British economy is now also suffering from Omikron, and there is a lack of staff in many places.



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Port of Liverpool (archive): The exit from the EU caused major problems in the movement of goods

Photo: Peter Byrne / dpa

Great Britain finally left the European Union (EU) a year ago, and according to a media report, numerous German companies have since been experiencing the negative effects of Brexit.

This is the result of a special evaluation of a survey by the German Chamber of Commerce and Industry (DIHK) among 3200 companies worldwide, from which the newspapers of the Funke media group report.

According to the AHK World Business Outlook study, 43 percent of German companies in Great Britain said they felt trade barriers or a preference for local competitors.

Above all, the shortage of skilled workers is an additional problem for German companies: 55 percent of German companies operating in Great Britain complained of a lack of staff.

The corona crisis also caused problems in the supply chain, reported 85 percent of German companies operating in Great Britain.

For comparison: worldwide, at 54 percent, significantly fewer companies were affected by supply chain problems.

Even with missing goods (37 percent) and increased legal uncertainty (25 percent), German companies in Great Britain experienced an above-average impact on their business.

Brexit is not the only thing that is changing the UK's economy and is causing a shortage of skilled workers that affects nursing homes, petrol stations and supermarkets.

In the meantime, the omicron variant of the coronavirus is also increasingly affecting economic performance in the country.

More and more employees are getting sick or have to isolate themselves at home - from rail transport to the entertainment industry to the fire service.

"Unfortunately, the pandemic is leading to some staff shortages," says the regional train operator Avanti West Coast.

"We're doing everything we can to keep our schedule," the company announced at the end of last week.

Nevertheless, connections could be canceled at short notice.

"Unprecedented" labor shortage in the fire department

In Edinburgh, Scotland, the Edinburgh Castle, which is popular with tourists, had to close its doors due to sick employees - as did the famous Natural History Museum in London.

In the British capital, the West End theaters have also canceled performances, including the "Nutcracker" and "The Lion King", in order to protect both the actors and the audience.

Hotels and restaurants are not spared either: announcements of closings are increasing in online networks.

"We apologize for all the table reservations that we had to cancel," says the Duke of Richmond pub in London.

"We have to close for the safety of our remaining employees and our customers."

More than 90,000 new corona cases were registered in the UK on Monday - a new high since the pandemic began, underscoring the exponential spread of Omikron.

The government of Prime Minister Boris Johnson, who was recently criticized for a number of scandals, has so far been sticking to rather cautious measures, including the appeal to work from home and a corona passport for vaccination or test status for nightclub visits and larger events.

The employers 'association CBI, for example, warns that consumers' fears about Omikron in the middle of the Christmas business, which is usually particularly important for retailers, are »burdening sales«.

Many companies, for example from the hospitality industry, which has been particularly hard hit since the start of the pandemic, had to struggle with staff shortages even before Omikron, especially because of the Brexit.

In London, unions have already warned that fire services are facing an "unprecedented" labor shortage.

The operational readiness is not yet endangered.

apr / Reuters / AFP

Source: spiegel

All business articles on 2021-12-22

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