Brexit: negative consequences for Germans / EU citizens 

There are practically only two ways for Great Britain to put the Brexit in practice: Either the hard or the soft Brexit. Hard means an exit out of the EU plus the exit out of the EU domestic market. The Brexit would be soft, if the United Kingdom would stay inside the domestic market.

The British Prime Minister Theresa May has explained, how she sees the future of Great Britain and the EU. She wants it the hard way, she wants a clear breach with the EU. Her country shall leave the domestic market and the customs union and instead arrange a free trade agreement. The trade with the EU should be as duty-free and trouble-free as possible.

But such a hard Brexit would have extensive consequences for the inhabitants of the island and the European Union. Ten points that will probably annoy:

Visa for Great Britain

The country even today doesn’t belong to the Schengen Area. That’s why there are border controls for EU citizens. Until now an identity card was enough. In the future a passport could be necessary. And in the worst case - but unlikely- a Visa. It’s very well possible that the British Government regulates that different for every country. For Romania for instance there could be a visa duty and for Germans not. Although Norway and Switzerland could serve as an example. You can enter those countries with an identity card up to 90 days and who plans on staying longer should bring their passport.

Getting sick becomes a risk in Great Britain

If you get sick in the EU as a citizen there is no financial risk. Statutory health insurance companies assume the entire costs, as long as patients stick to certain rules. In Great Britain that rule would bet to see a doctor from the state health care system NHS. But after the Brexit that assumingly won’t work due to Great Britain being a non-EU country. In this case a foreign travel health insurance would be necessary. For private patients everything will remain as it is. Often insured are safeguarded for six months by their private health insurance.

Expensive universities

If you want to study in Oxford, Cambridge or elsewhere in Great Britain you will probably have to pay more. Currently students from the EU pay a lower tuition fee than non-EU foreigners. Whether exchange programs like Erasmus will still exist in Great Britain still remains to be seen. Occasional they are possible with non-EU countries.

Employment

If Great Britain doesn’t commit to free movement of labour, it will get difficult to find work as a foreigner on the island. Great Britain will probably set narrow limits for foreign employees. Special employment visas would be the rule. Currently every EU citizen has the right to work in another EU country. The hope was that Great Britain wants to stay in the domestic market. The domestic market and free movement of labour are inseparably bound together.

Expensive fish

Practically all herrings that are served in Germany are fished in Great Britain’s 200 nautical mile zone. 55.000 tons in total. As well as loads of mackerels and blue whiting. After the Brexit Great Britain will likely prohibit fishing for EU fishers. Then the price of herring will rise. The solution for that would be an agreement with Norway. German fishers could go out in Norwegian waters and Norwegian fishers could cast out their nets in German waters.

Missing money in the EU budget

If Great Britain leaves completely, 11,5 billion Euros (in net terms) are missing in the EU budget. All other member states will have to raise that money and most of that likely Germany. But if Great Britain stays contrary to Mays announcement in the domestic market, they will have to pay for it. How much money that would be is hard to foresee today.

Customs duty

Inside the EU no commercial customs duty is applied for goods and services. May wants to leave the customs union and instead negotiate a free trade agreement. Nevertheless it is not to be excluded that EU and Great Britain will levy a commercial customs duty. That wouldn’t neither benefit Britain’s economy nor the economy of the member states.

Expensive Frankfurt

Until now London is the most important European financial center. But that is at least partly to the fact that Great Britain is still a member of the EU. Frankfurt could challenge London’s position in the future, if financial service providers and companies want to benefit from acting out of an EU country. And if many of those bankers cross the English Channel in direction to Frankfurt, the rents and prices for real estate in Frankfurt and the area could rise very fast.

More expensive mobile and telephone calls

One of the achievements of the EU, which every citizen quickly notes: Expensive roaming charges have been deprived. Mobile telephony is costing everywhere in the EU the same. Whether the contract was signed in Germany, France, Italy or Great Britain. But if the Brexit comes, those rules are possibly obsolete and mobile telephone operators in Great Britain will have foreign customers pay again.

Jobs in German car industry in danger

Germany has recently exported goods for almost 89 billion Euros to Great Britain and has imported for 38 billion Euros from Great Britain. If Great Britain will exit the domestic market, the export won’t collapse but be significantly more difficult. The danger exists that German car companies will only be able to export a certain amount of vehicles to Great Britain. And less utilization in the factories would mean less work.

Sources:

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