BVL: British withdrawal from the EU is not a good choice

The German Logistics Association (BVL) takes the result of the EU referendum in Britain with concern. British citizens have decided that their country should leave the European Union. This is not a good choice and it is a bad news for the economy and logistics in Germany and Europe, says BVL. The remaining EU Member States should now move closer together and strengthen their common interests.

The decision of Britain to quit the EU will affect German economy, nevertheless the flow of goods will continue after the withdrawal from the EU. But new contracts between the UK and its trading partners have to be renegotiated. For a period of two years this is provided. However, from the BVL’s experts view, after that many different scenarios are possible. There may come two extremes: In the case of otherwise unchanged EU it is even expected substantial growth of the logistics industry in Germany as distribution centres in the United Kingdom would be moved back to the mainland. But another disintegration of the European Union is also conceivable, if other countries follow the example of Britain and organize their own referendums. “That would affect the Germany’s export,” says the BVL Board Chairman Raimund Klinkner. “The existing contracts may become invalid because the currently largest market in the world would no longer exist.” From the perspective of 10,000 BVL’s members this is not a desirable state.

Raimund Klinkner emphasizes: “The EU membership was and is the right way. The EU has evolved in 2015 with 17 percent share of global GDP to one of the strongest economies in the world – on a par with the US and with China. Some 500 million people live in the EU. The creation of a common internal market has been increasing trade and economic activity, thus providing for a positive development of the economy. The payments given by the EU to its Member States have contributed to this purpose. EU membership is good for economic power, while promoting the economy and thus the standard of living in the Member States.”

“The logistics takes top places in Europe – on par with the metal processing (1.2 trillion € in annual sales), the food industry (900 billion €) and the automotive industry (800 billion €). Germany, Benelux and France have key positions in logistics in Europe, the Scandinavian countries are well positioned in the market and the logistic services in Poland are excellent. These advantages in global competition should reinforce the Member States on together,” said Raimund Klinkner.