Great Britain’s economy is groaning under the consequences of Brexit. The government is making corresponding efforts to woo European partners – as was the case during Federal President Steinmeier’s state visit.
It is the third state visit to the UK this year. After French President Emmanuel Macron and US President Donald Trump, Frank-Walter Steinmeier is now traveling to Great Britain. It is said that it was important to the king that this event could also take place this year.
But such a state visit will probably never be a routine event. Yesterday the Household Cavalry squadron rehearsed again in Windsor for the magnificent parade scheduled for today. The helmets gleamed, the horses stood in rows. Major Jeremy Bushell answered questions from the press: This is Britain’s soft power, this is what the nation is good at. The cavalry is an important part of this.
Intensive advertising for German partners
The third state visit in a year – this definitely shows how Great Britain now wants to position itself in the post-Brexit period: between the USA and Europe. There is a lot at stake for Great Britain, especially economically. Brexit leaves its mark. A new study by the National Bureau of Economic Research summarizes that economic performance at the beginning of 2025 was six to eight percent lower than in a scenario without Brexit. Investments are also lower.
This is where German companies come into play, for example. The Starmer government is seeking rapprochement, the king is happy to underpin this with the necessary symbolism and extended the invitation for the German head of state. And the German economy also sees the need to improve relations.
Many things have become more complicated
Steffen Hoffmann is the head of Bosch in the UK. The group employs 6,300 people in Great Britain and Northern Ireland. Sales: four billion euros. Brexit has made things more complicated, he says. “Just an example: before Brexit we had around 40 import transactions per year, and now there are 10,000.” The data must be transmitted for each import. The British Bosch subsidiary now even has a small department with almost a dozen employees who only deal with this.
But there are other difficulties: In the past, it was never a problem to simply send engineers to another country to help out with a model launch, for example, says Hoffmann. This has now become more difficult because work permits are required. Steffen Hoffmann would like to see simplifications for the economy. He believes that the fact that this state visit is now taking place is an important signal in the right direction.
Steinmeier with Business delegation in tow
Frank-Walter Steinmeier is aware of the importance of the economy. Representatives from Deutsche Bank, RWE, BMW, Helsing and Siemens are traveling in the Federal President’s delegation. Even if the heads of state will not make any decisions, there is room for political discussions. Steinmeier is also meeting British Prime Minister Keir Starmer today.
Starmer and German Chancellor Friedrich Merz have just signed a friendship treaty. It defines areas of cooperation: defense, economy, migration, education and research. This contract became necessary because many areas of cooperation were no longer regulated after Brexit.
The majority now regret Brexit
Steinmeier’s visit is the first by a federal president in 27 years. Roman Herzog was last given this honor in 1998. For years such a visit was simply not necessary – that has now changed.
According to a recent survey, only 31 percent of Brits believe it was right to leave the EU. 56 percent say the decision was wrong. Focusing on the economic impact, only 23 percent say the exit was good for the economy.