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Hard Brexit Would be Disastrous: German Industry

Britain crashing out of the European Union without a divorce deal would have disastrous consequences for companies and workers in Britain and across Europe, the head of the BDI German Federation of Industry said on Saturday (17).

Britain's prime minister Theresa May is fighting to defend a draft deal agreed with the EU but opposition from both within and outside her party has raised the possibility of a no-deal hard Brexit or even another referendum.


Dieter Kempf told Funke Mediengruppe newspaper chain that a no-deal Brexit would hit the automotive, aerospace, chemical, pharmaceutical, engineering and electrical industries particularly hard. But service industries including banking and tourism would also be affected.

"A hard Brexit would be disastrous," Kempf said, adding that German firms should prepare for a no-deal exit of Britain from the European Union.

"It would cause great difficulty for tens of thousands of companies and hundreds of thousands of workers on both sides of the English Channel," he said.

More than two years after the United Kingdom voted to leave the EU, it is still unclear how, on what terms or even if it will leave as planned on March 29, 2019.

Opponents of the agreement with the European Union, which still has to be approved by the British parliament, say it is the worst of both worlds, leaving the bloc with too much power over Britain while taking away its say in making the rules.

Kempf said German industry and government should brace for further uncertainty in coming months.

"I appeal to the lawmakers in the British parliament to be conscious of their responsibility," he said. "The ball is in London's court ... New negotiations are not the answer."

Reuters

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London tourist levy

The capital recorded 89 m overnight stays in 2024

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London to introduce tourist levy that could raise £240 million a year

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Highlights

  • Government expected to give London powers to bring in a tourist levy on overnight stays.
  • GLA study says a £1 fee could raise £91m, a 5 per cent charge could generate £240m annually.
  • Research suggests London would not see a major fall in visitor numbers if levy introduced.
The mayor of London has welcomed reports that he will soon be allowed to introduce a tourist levy on overnight visitors, with new analysis outlining how a charge could work in the capital.
Early estimates suggest a London levy could raise as much as £240 m every year. The capital recorded 89 m overnight stays in 2024.

Chancellor Rachel Reeves is expected to give Sadiq Khan and other English city leaders the power to impose such a levy through the upcoming English Devolution and Community Empowerment Bill. London currently cannot set its own tourist tax, making England the only G7 nation where national government blocks local authorities from doing so.

A spokesperson for the mayor said City Hall supported the idea in principle, adding “The Mayor has been clear that a modest tourist levy, similar to other international cities, would boost our economy, deliver growth and help cement London’s reputation as a global tourism and business destination.”

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