CEO Today Global Awards

44 www.ceotodaymagazine.com CEO Today Global Awards 2020 GERMANY BREXIT: EXIT OR NEW HORIZON FOR THE UK? By Helmuth Jordan In 2016 the UK voted by 51, 9 % to 48, 1% to leave the EU. Membership in the EU ended in 2020 – 47 years later. UK policymakers were hoping for quick future stability. Unfortunately, there is no shortcut to turn a Referendum quickly into Law. It should be of secondary importance to continue calculating, which nation benefits more from Brexit than another. Discussing this frustrating issue for an indefinite time would damage both the UK and the EU in the long run. Only a climate of economic and legal stability will provide viable solutions. Instability will provoke undesired political wrangling and private law suits. In principle companies are willing to adapt their policy quickly, as they want to – and have to - stay in line with important factual, market and legal changes. If the law is being pushed back and forth, or lacks clarity on key points, it inevitably will become a costly affair for all companies. At the same time governments do not improve their reputation. UK and EU The relationship between the UK and the EU is far less complicated than it appears. From day one every EU nation had the basic right to give notice in order to leave the EU. Therefore there is no doubt that the UK Government is authorized to leave. The UK has the choice between “No-Deal Brexit” or “Brexit with a Deal”. A “No-Deal Brexit” would lead to Customs Declarations, the WTO Rules would apply. This would be difficult and contentious for all. Financial and other problems would arise when it comes to future planning both in the EU and the UK. For example: whether EU lawyers will continue to practice in the UK, and vice versa, is just one open question. The EU will not receive 12 billion Euro for its Budget from the UK any more. Foreign policy of the UK will be submitted to less restrictions. This suggests to review the long term policy of Switzerland. The Swiss managed to enter a large number of bilateral Agreements. These Agreements work in practice very well. With a No-Deal Brexit it can be expected that a number of previously unplanned market adjustments will occur. European Fund Managers may be prevented from trading some of the UK`s biggest stocks in London. A UK broker may not be able to trade Deutsche Bank in Germany. One market adjustment happened already: Barclay was given approval by a UK Court to move 190 billion pounds of assets to its Irish subsidiary because of continuing uncertainty over a No-Deal Brexit. Such steps are just forced maneuvers. A No- Deal Brexit will certainly continue to cause significant changes with unforeseeable consequences. Northern Ireland / Scotland / Wales The Good Friday Agreement of 1998 on Northern Ireland still holds. Of course all