While British Prime Minister Theresa May is struggling to get her Brexit deal to be approved by a majority of the country, German business groups have urged their members to be ready for a no-deal situation.
If May's plan fails to be accepted by the EU, a hard Brexit would see Britain crash out of the European Union without any sort of deal, meaning a fresh start of businesses. Last week, she secured a "business-friendly" deal that was approved by her cabinet. But the hard-won compromise has come under fire from within her governing Conservative Party and may yet fall flat with EU negotiators.
"Even if the British government is moving now, companies must plan for the scenario in which there is no agreement," Joachim Lang, managing director of the BDI, Germany's biggest industry lobby, told the Welt am Sonntag newspaper.
The German industry is concerned about increased friction in a trade with Britain after Brexit. Britain is the second-biggest export market for German car manufacturers. But Lang said some German businesses were only just starting to analyse what Brexit would mean for them, adding: "At least that has moved us forward from a few months ago."
In an article for The Mail on Sunday, the British prime minister urged the government to come together and push her Brexit deal before the country ends up without a deal. She stated there is no other "workable alternative future trading relationship", saying her deal was a good solution.
This is the scale of the opportunity before us and my message to the country this weekend is simple: we need to keep our eyes on the prize. If we don't, we risk ending up with no Brexit at all," she wrote.
On Monday, May faces a crucial vote in the House of Commons and is due to publish the white paper detailing her plans for Brexit next week.
