Brexit consequences for Germany: Are the effects foreseeable?

19. July 2022

“Brexit consequences for Germany”
What does Brexit mean for entrepreneurs, freelancers and global nomads in Germany? The situation is confusing, but not hopeless!

What will follow after Brexit? Happy End in Germany?

The consequences of Brexit are hard to grasp, the Brexit story is long and branching – but is there a “happy ending”? Sorry, but this isn’t Disney. Or is the ending not happy simply because it’s not over yet? In summary, Brexit is a declaration of bankruptcy to the United Europe. A Europe that many people, especially young people, would like to see. The freedom to work and live anywhere in Europe fits our times. The consequences of Brexit for Germany and the EU are exactly the opposite. One thing is certain: as of January 31, 2020, the United Kingdom is no longer participating, the United Kingdom is leaving.

What is the Brexit? Brexit refers to the United Kingdom leaving the European Union. Completed on January 31, 2020. But what does Brexit mean for Germany in concrete terms? For consumers? For entrepreneurs, freelancers and global nomads who can and want to work from anywhere without restrictions? What consequences must we prepare for in Germany? In summary, one can say about the Brexit: The situation is confusing. Even savvy observers and politicians from Germany are in danger of losing sight of the big picture. The referendum of June 2016 was analyzed again and again – many unanimous opinions of the British could not be found. What seems certain is that the views of young and old, urban and rural, are simply too different. So the UK is now celebrating the dawn of a new era. And we in Germany have been living in the European Union without the British since January 31. Nothing has been missed so far, because until the end of 2020 we are in a transition phase and major changes are not really noticeable for German companies for the time being. But of course, companies from Germany must now prepare themselves well.

Beware of longer stays in the UK Not much changes until the end of 2020, there is a transition period. From summer 2021, all European Union citizens who want or need to work in the UK for longer will have to apply for a residence permit. In the first five years, this will probably be possible via a “pre-settled status, but maybe not!”. If there is no binding regulation by the end of 2020, the approval requirement could come into force at the beginning of 2021. It is also important to keep an eye on German health and accident insurance. Everything seems to remain the same until the end of the year, but new rules will apply from 2021. Which ones exactly? Good question, next question.

Brexit: Who will benefit from the UK’s exit in Germany?

Brexit and money. Will the dream of some Brexit supporters now come true and the United Kingdom become a tax haven just off the European coast? Will many German companies and entrepreneurs soon be investing their money in pounds in a tax-efficient way? Will the UK’s exit lead to a boom in the British economy? Hardly. Because since the end of January, the Cayman Islands are already on the black list of the European Union. The group of islands in the Caribbean is accused that the legislation there facilitates tax evasion. As a British overseas territory, the Caymans were previously untouchable – after Brexit, they are no longer. And neither is Great Britain anymore. And how is the British pound doing? As you know, that still exists. Although many Germans and Europeans have already rolled their eyes at the airport exchange counters in recent years. On Brexit day, the British pound even rose slightly by 0.2 percent to 1.185 EURO. Currently, the value of the British pound is now ten percent below the value it had before the whole Brexit story.

What language will we soon be speaking in Europe? Will English remain the common lingua franca, despite the British leaving? If you look at the number of people who speak a particular language in Europe, English is being displaced by French. That is, more people in the EU speak French than English. Thus, the three most spoken languages in the European Union are Italian, French and German. There is a decision on this: English will remain the lingua franca because it is not only spoken in Malta and Ireland, but is also common in most EU institutions.

What does Brexit mean for Germany?

Who will benefit from Brexit? Ideologically, there are no winners. But as is well known, every medal has two sides. In Germany, the Frankfurt location, among others, is benefiting from Brexit. For example, many international banking houses that previously had their European headquarters in England have turned their attention to Frankfurt. As a result, office space in the center is almost impossible to find and rents are skyrocketing. After the Brexit decision, the boom on offices in the financial metropolis has increased even further. One popular solution, and thus a direct result of the Brexit in Germany, is the run on workspace providers like Satellite Office. The German market leader for casual-luxury working offers smaller and larger offices, coworking spaces, team offices and meeting rooms. The exclusive workspace, which covers more than two thousand square meters, is located directly at the Alte Oper. Here, workstations and offices can be rented flexibly for short or long periods. Entire departments or international teams can also find their place here. Purist design, understated colors, wraparound terraces with breathtaking views of the Towers or Opera Square characterize the offices and executive suites. In the beautiful, small café area with barista machine and snacks, Brexit bankers can meet for a short or long coffeetalk, a business lunch or in the specially designed, discreet fireplace lounge with terrace for completely confidential conversations. They don’t even have to leave their workplace, where they can concentrate and work in peace. “It’s humming on every corner in Frankfurt, says Anita Gödiker, Managing Director of Satellite Office, with satisfaction. Now they are here, the bankers and stock market experts, the financial experts and consultants. And that is again the other side of the coin.

Good information on Brexit and its consequences for Germany can be found at Tagesschau: