Published On: Tue, Oct 29th, 2019

Germany angry Brexit ‘exodus did not happen’ – study shows London continues to lead | World | News


Germany, the European Union’s largest economy, had hoped to attract British start-ups to relocate into major cities such as Berlin in the wake of the UK’s stumbling exit from the bloc. However, Lukas Breitenbach of Berlin Partner, an organisation which supports companies willing to relocate, said despite an increase in requests to move the “exodus did not happen”. Instead, British start-ups in the capital continue to thrive and outperform their international rivals located in both Germany and France.

So far in 2019, a study by consulting firm EY, found British businesses have raised almost £6 billion from investors through venture capital and financing rounds on the stock market.

EY found British start-ups accounted for €5.7 billion.

Paris came in second place with €2.2 billion.

Meanwhile Berlin trailed in third-place on €2 billion.

EY partner Peter Lennartz said: “The Brexit chaos seems to have little impact on the London start-up scene.”

Yaron Valler, venture capitalist Target Global, who opened an office in London in April said: ”Brexit or no Brexit, London will always be one of the world’s most innovative, high-growth tech hubs.”

In a further damning statistic for Berlin, EY found German businesses are under increasing competition from emerging markets across Europe.

The firm found in Sweden, the number of financing rounds increased by 19 per cent, in Switzerland by 25 per cent and in Hungary by 22 per cent.

The anticipated post-Brexit boom for Germany has failed to materialise and has left the nation on the brink of a recession.

Last week the German Central Bank warned in its monthly report, the economy is expected to contract for the second consecutive three-month period.

The Bundesbank said in its report: “Germany’s economic output could have shrunk again slightly in the third quarter of 2019.”

The central bank added: “The decisive factor here is the continued downturn in the export-oriented industry.”

(Additional reporting by Monika Pallenberg)



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