Chancellor speech: German Family Business Conference 2018
皇冠体育app Chancellor of the Exchequer, Philip Hammond's speech at the German Family Business Conference 2018.
Thank you for inviting me here today.
It is good to speak, at this time of great change for our continent, at the German Family Business conference.
Both because family businesses have historically been, and continue to be, the very heart of our economies, and the bedrock of our communities.
And because of the shared values that great family businesses here in Germany, in the UK, and across Europe, hold and represent:
皇冠体育app belief in taking a long-term view of the economy and the world, and an ability to prosper, generation after generation;
A focus on adapting in order to stay relevant 鈥� as the modern world changes around us;
A view that to succeed is to leave your business in a stronger state than you inherit it.
And the nations of Europe must adopt the same values:
We must take a long-term view; we must adapt as the world around us changes - particularly as the technological revolution takes hold; we must ensure the decisions we take leave our countries and societies in a better place than we found them鈥�.
鈥nd we must work together 鈥� as a family of nations 鈥� to take on the common challenges that we face.
And our continent faces many common challenges.
皇冠体育app global and European economies have recently enjoyed a period of relative strength鈥�
鈥ut risks clearly remain.
皇冠体育appre鈥檚 been a rising tide of sentiment among our electorates, that questions the conventional wisdom of free trade, open markets, and globalisation鈥�
鈥nd whether our economic model is working for people across our continent鈥�
A challenge, that as leaders in government and business, we will have to take on, and win, all over again.
We face a technological revolution 鈥� that, while presenting untold opportunities for improving living standards and driving progress鈥�
鈥ill also give rise to anxiety about the pace of change in the economy鈥�
鈥nd will require us collectively to evolve our tax, regulatory, and competition systems, so they are fit for the digital economy of the 21st Century.
鈥o ensure people have the skills they need in a world of increasing automation鈥�
鈥nd to convince them that everyone will share in the benefits of technological change and the economic growth that flows from it.
And beyond the borders of Europe we鈥檝e seen an increasingly uncertain geopolitical context鈥�
鈥arlier this week I returned from Canada with my German, French, Italian, and other G7 colleagues鈥�
鈥nd today our leaders meet to discuss some of these challenges too:
From the threat of an emboldened and re-arming Russia on Europe鈥檚 east;
皇冠体育app ongoing escalation of tensions across the Middle-East;
鈥nd the uncertainty around the policies of Europe鈥檚 largest trading partner, the US.
We are all deeply concerned by the US decision last week to impose tariffs on steel and aluminium imports from Europe, and other allies around the world.
We continue to raise these concerns with the US, and our close cooperation with Germany, the EU, and colleagues in other member states is a vital part of a unified response.
皇冠体育appse are challenges that we all face together as Europeans.
Responding to them will require collaboration and co-operation.
And if we want our shared values 鈥� German values, British values, French values 鈥� European values 鈥� to prevail, we must ensure that Europe continues to speak with one voice.
I have enjoyed many productive discussions with my German counterparts on these shared challenges over the years that I have been Defence Secretary, Foreign Secretary, and Chancellor of the Exchequer鈥�
鈥nd I look forward to working with this German Government to determine how we will continue to work together on key issues 鈥� in an increasingly uncertain global context.
And that is my central message today:
That while Britain is leaving the political institutions of the European Union, we are not leaving Europe.
Every family business - in Germany, in Britain, or anywhere in Europe - has a unique story to tell.
And so too, do the individual nations of Europe.
Each with its own history, culture, and experiences.
Britain鈥檚 Island story has led us to a different conclusion about political integration in Europe鈥�
鈥han that of Germany, or indeed, France鈥�
鈥ut we still respect the strong and consistent role that Germany has played in European integration鈥�
鈥nd understand the central place that the European Union occupies in German and wider European political and business philosophy.
皇冠体育app Brexit vote makes us no less European.
It makes us no less committed to a rules based international system, free trade, democracy, free speech and human rights.
Just look at our foreign policy since the EU referendum:
We remain firmly committed to the Paris Climate agreement;
We are a vocal defender of the Iran nuclear deal;
We continue to be the biggest advocates for free international trade, and the rules based trading system;
We took action, with our French and American allies, when Assad used chemical weapons against his own people in his horrifying attack in Douma.
We are working together to deliver stability and security in the Western Balkans, ahead of an important summit meeting in London next month.
Our intelligence agencies collaborate to counter the evolving threat of terrorism, that has tragically affected us all in recent years.
Our military shares the burden of protecting Nato鈥檚 eastern borders.
And we are working with our allies to counter the unacceptable behaviour of the Russian state鈥�
鈥hich we in Britain experienced so recently in Salisbury.
And we very much appreciate the solidarity of Germany and other European states in the days and weeks since.
So when we say that Britain is leaving the political institutions of the European Union, but not leaving Europe, we really mean it.
And I hope that in the Brexit negotiations we can draw upon these shared values, as we work towards a deep and comprehensive future partnership鈥�
鈥nd reach an outcome that supports our shared prosperity.
Delivering benefit to both Britain and the EU.
It was Britain鈥檚 and Germany鈥檚 economies that powered Europe out of the financial crisis -
Between us, we have been responsible for almost half of all economic growth in the EU since 2010鈥�
鈥nd created more than half of all new jobs.
And so it is my hope that the economic partnership and longstanding friendship between our two countries鈥�
鈥hat has helped bring about peace, security, and prosperity on this continent for over seventy years鈥�
鈥an be mobilised to support our common goal of a deep, special, and mutually beneficial partnership between the EU and the UK in the future.
Because while Europe has enjoyed a period of robust growth, we cannot be complacent.
And our economies are not so strong that they can afford to be exposed unnecessarily to economic and financial stability risks from a bad Brexit outcome.
And this isn鈥檛 just about the UK economy, but the German economy, and the EU economy.
Germany exports more to the UK than any other country bar the US 鈥�
鈥nd from Aldi, to BMW, Bosch, to Sixt, German companies, many of which are family owned and represented here today, employ 412,000 people in the UK鈥�
鈥nd in return almost one in ten foreign companies here in Germany, are British.
And just last week my favourite sandwich chain 鈥� Pret a Manger 鈥� was bought by a German family-owned investment group!
皇冠体育app UK is a significant part of the EU marketplace.
We represent almost 13 percent of the population of the EU鈥�
鈥nd 15 percent of its GDP.
And it is clear to me that ensuring that businesses can continue to operate across that whole marketplace after Brexit鈥�
鈥s essential to delivering a prosperous future relationship between the EU and the UK.
We have made significant progress since Article 50 was triggered鈥�
鈥oth in our internal debate in the UK about what Brexit should mean鈥�
鈥nd in our negotiation with the EU.
皇冠体育app first stage in the negotiations successfully settled many withdrawal issues鈥�
鈥ncluding the UK鈥檚 financial obligations to the EU.
And in March we reached agreement on a transition period, running until the end of 2020鈥�
鈥uring which businesses in Germany, the UK and across Europe can continue to operate as before鈥�
鈥nsuring that they will have only one set of changes to navigate at the end of that period.
We鈥檙e currently focused on our future customs relationship鈥�
鈥hich I know from my discussions is a top priority for businesses in this room鈥�
鈥nd so it should be a top priority for European governments too.
Germany exported more cars to the UK last year than to the US and China combined鈥�
鈥�10% of all French cheese exports go to the UK鈥�
鈥�80% of all Irish poultry exports.
皇冠体育app UK is exploring two possible future customs models鈥�
鈥oth are 鈥渨orks in progress鈥濃��
鈥ut we are confident that, building on the work we have done鈥�
鈥e can develop from them a solution that responds to the concerns of businesses鈥�
鈥inimises frictions and burdens at, and behind, the border鈥�
鈥rotects the hard-won progress in Ireland鈥�
鈥nd sustains our trade with our EU27 neighbours.
And recognising that these future models will take time to develop and establish鈥�
鈥nd that businesses in the UK and across Europe need certainty as soon as possible鈥�
鈥esterday we published our proposals for a temporary customs arrangement鈥�
鈥n line with our commitment in the December Joint Report to avoid a hard border in Northern Ireland.
Beyond customs, we continue to work on a model for a comprehensive future economic partnership鈥�
鈥 partnership that protects the supply chains and established trade relationships that I have just talked about鈥�
鈥afeguards jobs and businesses that depend on them, on both sides of the Channel鈥�
鈥nd promotes the values we share across the continent of Europe.
And of course, in doing so, we don鈥檛 have to start from scratch.
皇冠体育app UK and the EU27 start in a unique position鈥�
鈥ith deeply interconnected economies and supply chains鈥�
鈥quivalent regulatory standards and regimes鈥�
鈥nd unrivalled collaboration in everything from trade, security, and defence鈥�
鈥o education, science, technology and culture.
We will set out more detail in the coming weeks on key elements of the British Government鈥檚 ambition for a mutually beneficial relationship between the EU and the UK:
But for example, we鈥檒l seek a comprehensive system of mutual recognition to ensure that, as now, products only need to undergo approvals in one country, to show that they meet regulatory standards across Europe; We鈥檒l explore the terms on which the UK could maintain a relationship with EU agencies, such as those for chemicals, pharmaceuticals, and aerospace, so that they continue to benefit from UK expertise, and we can deliver such a system of single approvals;
And on services, we all have an opportunity to establish the most ambitious free trade agreement ever 鈥� with continued recognition of professional qualifications, a labour mobility framework that enables travel to provide services to clients in person, to a bespoke partnership in financial services 鈥� to enable the ongoing delivery of cross-border financial services, in both directions, for the benefit of businesses and citizens on both sides of the channel, while protecting financial stability, and maintaining fair competition.
But reaching agreement on all these key elements, and delivering on our vision of a future economic partnership that protects businesses, jobs, and prosperity, will only be possible if both sides want the same thing.
鈥淶um Tango geh枚ren immer zwei.鈥�
And I say this today 鈥� because I fear that some EU opinion-formers, in government and in business, have succumbed to the temptation to see the Brexit challenge as a problem for the UK to resolve alone.
I understand the instinct that says: 鈥溁使谔逵齛ppy voted to leave - let them sort it out鈥�.
But this has to be a two-way conversation.
And it has to reflect the political realities on both sides.
One the one hand, the EU must recognise the British people鈥檚 vote to be outside of the EU鈥檚 political structures鈥�
鈥nd regain control of their borders.
And on the other, we must recognise that anything that undermines the integrity of the Union, or looks like 鈥榗herry-picking鈥� will not be acceptable to the EU.
Wir verlangen keine Extrawurst!
Instead we recognise that we need to find a new balance of rights and responsibilities in our economic relationship鈥�
鈥nd that while the UK will no longer have all of the responsibilities it currently has鈥�
鈥e will have to give up some advantages of membership too.
We want both sides to work together creatively to reach a final-outcome that鈥�
鈥llows business to carry on鈥�
鈥rotects European jobs and prosperity鈥�
鈥nd allows Britain to continue to contribute to Europe鈥檚 security.
I recognise that what we are proposing is a uniquely close third county relationship鈥�
鈥ut the fact is that all of the EU鈥檚 third country relationships are unique鈥�
鈥nd so it would be perverse for the future UK-EU relationship to be uniquely 鈥榦ff the shelf鈥�!
For it was always forseen that the EU should have close relations with its neighbours鈥�
鈥s Article 8 of the Treaty says鈥�
鈥︹�漷he Union shall develop a special relationship with neighbouring countries, aiming to establish an area of prosperity and good neighbourliness鈥�.
And I passionately believe that all of us in this room, and across Europe, should be interested in an outcome that allows that鈥�
鈥n outcome that properly reflects the 45 years that we have spent together as members of the EU鈥�
鈥nd I believe that with the political benefits of such a solution articulated by Member States鈥�
鈥nd the economic logic articulated by the voice of business鈥�
鈥e can make this case, and win the argument for a future partnership that works in the common interests of all of our citizens.
Reflecting the lessons of out Continent鈥檚 long history;
Working together to ensure Europe remains an open, outward looking, free-trading Continent;
Attracting talent and investment from around the world;
Building a future partnership that we can be proud of鈥�
鈥ne that stands the test of time, and that will support the prosperity, security, and living standards of our children, and our children鈥檚 children.
Thank you.