Post-Brexit German companies are reorienting towards the East, exports to Poland, the Czech Republic, Hungary and Russia have increased, but this growth is seriously threatened by the "worrying political tendencies" between Germany and the conservative Hungarian-Polish country pair - warned Oliver Hermes, the German Eastern President of the Trade Association and CEO of WILO, reports korkep.sk.

According to Hermes, Central and Eastern Europe will become a key trading partner for German companies. In the first half of the year, the volume of German exports to Central and Eastern European countries increased to 124 billion euros, and imports jumped to 121 billion euros, which represents a 25 percent increase. Foreign trade with Central and Eastern Europe accounts for one fifth of German trade.

At the same time, Hermes pointed out the worrying political circumstances, it happens that the Berlin government objects to the political orientation of Warsaw and Budapest, and accepted the misleading accusations made against the two countries regarding the rule of law and freedom of the press. Hermes called on the German government to sort out the political relations with Budapest and Warsaw and to help the constructive dialogue in the direction of Brussels as well.

Great Britain is replaced by Central and Eastern Europe

Brexit and the recent abatement of the coronavirus wave have shown that the trade of the extremely (essentially compulsively) export-oriented German economy points to the east, to Poland, the Czech Republic, Hungary and Russia. German exports to this country increased by 20 percent in the first half of the year, and imports from these countries also rose significantly.

At the same time, German trade with the United Kingdom did not increase, in fact it decreased by 2.3 percent compared to the half-year figure of a year ago (which is a significant drop, given that last year was already marked by the downturn caused by the coronavirus).

With a population of forty million, Poland is Germany's fifth largest trading partner, behind the USA and ahead of France. Meanwhile, Great Britain fell to 11th place.

It is also no coincidence that the trade volume between Germany and Russia is also increasing, despite the anti-Russian sanctions. Exports from Berlin to Moscow increased by almost 25 percent.

According to Hermes, the commissioning of Nord Stream 2 should not be hindered, despite the fact that the gas corridor represents a serious financial and geopolitical disadvantage for the Central and Eastern European region. At the same time, the president of the trade association would expect the German government to offer the region a more acceptable alternative to Chinese capital.

Before elections

The timing of the resolution is no accident, general elections are held in Germany on September 26, and according to the latest polls, the social democratic SPD is in the lead, ahead of the former favorite, the CDU/CSU party union.

Source: korkep.sk

MTI Photo: Sándor Ujvári