In under 150 days, the United Kingdom will leave the European Union after triggering Article 50. Given the lack of progress made in day-to-day negotiations, the prospects of a deal – and therefore a regulated Brexit – are dwindling. In particular, the questions surrounding the new EU external border between Northern Ireland and the Republic of Ireland are still to be cleared up. If the parties can’t come to an agreement on this issue, they can’t expect to reach a Brexit deal.
The current uncertainty surrounding events after 30 March 2018 has already led major companies like Jaguar Land Rover, Mini and Airbus to announce emergency plans. The seriousness of the situation is reflected by early plant holidays, the shortening of production to a three-day week, and postponed investment decisions. According to a survey conducted by the British business organization CBI, 58% of British companies will have implemented emergency plans for a hard Brexit by the end of November.
And it’s not just companies that have long been preparing for life after Brexit: From the outset, the Brexit process has induced targeted actions from Hessen’s state government and other stakeholders in Hessen’s financial and location marketing sectors. The aim is to help the local economy overcome the challenges posed by Brexit and seize upon any ensuing opportunities for Hessen.
The future of Hessen as a business location is looking rather bright. This development was reflected by last year’s increase in direct overseas investments, and positive messages are also being heard locally.
86% of companies in Frankfurt expect the city to benefit from Brexit, as found by a study conducted by the Center for Financial Studies. These expectations are justified. Since the Brexit referendum, around 25 international banks have already announced plans to expand or open a new office in the financial center of Frankfurt and Hessen.
And the financial sector won’t be the only industry to benefit in Hessen: The region’s very strong automotive, chemical and pharmaceutical industries are now attracting even more companies from a wide range of fields.
If you’re interested in Hessen as a location for your business, our team of investment consultants will be happy to help. We’ll gladly give you support and advice. You can find more information about Hessen as a business location here: www.invest-in-hessen.com.