A hard Brexit will be ‘mission impossible’ as head of German motor industry warns Britain it could be forced to stay in the single market
VDA president Matthias Wissmann warned the UK it could be forced to stay inside the Single Market and the tariff-free customs union
A SO-CALLED ‘hard Brexit’ will be "mission impossible" for both Britain and the European Union, according to the head of the German motor industry association.
VDA president Matthias Wissmann warned the UK it could be forced to stay inside the Single Market and the tariff-free customs union as leaving them would have "massive negative effects" on both sides of the Channel.
He said the EU should aim to keep Britain in both, forcing it to pay into the Brussels budget and accept the resulting rules, including the free movement of people, which has been ruled out by Theresa May.
Mr Wissmann highlighted the "deep reciprocal dependency" of the two countries' automotive industries, with German cars accounting for half of all new cars registered in the UK, which imports 86% of its vehicles.
Similarly, British car production has boomed over the last five years, growing by a quarter to 1.6 million vehicles in 2015, with German brands accounting for 11%, and 57% of car exports sold in the EU.
Writing in the newspaper, Mr Wissmann said the figures show the "deep interdependence" between the UK and EU, as well as Germany.
"The hard Brexit preferred by Theresa May would have severe side effects," he said.
"A long period of uncertainty must be expected until new contracts are concluded. This can take years - a frightening perspective for investors.”
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He went on: "In the UK there is hardly anybody to say to the people that a hard Brexit will not be a "win-win situation" but, above all, laborious and expensive.
"It remains the hope that in the upcoming exit process the realisation of the nearly insurmountable hurdles prevails. A hard Brexit is indeed a 'mission impossible’...
"The aim of the talks must be: Britain should remain in the internal market and in the customs union, accept the basic freedoms and make a financial contribution to the EU budget, in return for unimpeded access to the internal market.”
But in comments which could cheer the Prime Minister, who will be considering how much leverage she has in the negotiations, Mr Wissmann highlighted the strategic importance of the UK to Germany.
He said: "They are the voice of market economy, competition, as opposed to representatives of a 'transfer union'. Without London it would be even more difficult for Berlin in Brussels to stand up against the desires of other EU countries.
"Moreover, the EU 27, a union without the British, would have less weight anywhere in the world.”
Mr Wissmann's comments come after Brexit Secretary David Davis told car manufacturers earlier this month that ministers were focused on getting the "best deal" for the industry.