German companies will scale back investment if Britain leaves EUStaff writer ▼ | May 21, 2016
A majority of German companies are prepared to reduce their investment in Britain if the country decides to leave the European Union at a referendum next month.
To stay or not The Association of German Chambers of Commerce and Industry:
Four in five German companies expected a "Brexit" to have negative impacts on their business. Nearly one third of companies said it would affect their investment at a "very negative" level, meaning that more than 10 percent of the investment would be drawn back.
"A Brexit would be highly detrimental to all involved," said Clemens Fuest, head of German Ifo economic institute, "Germany would be the EU's biggest loser since Britain is a key market for its exports. As for Britain, it would damage itself with a Brexit."
Currently, some 2,500 German companies have subsidiaries in Britain, which is the fifth biggest trading partner for Germany.
A recent study showed that if the UK leaves the EU, German economic output would suffer a loss of up to 45 billion euros ($50.55 billion) by the end of 2017. ■