Berlin/London, 9 October 2025 – A recent survey conducted by KPMG in Germany and the British Chamber of Commerce in Germany (BCCG) has revealed that there is a growing optimism among German companies regarding their relations with the United Kingdom. The seventh “German-British Business Outlook 2025” found that 85% of German companies expect improved relations with the UK, with 40% anticipating “significantly closer” cooperation.
This significant shift in sentiment is driven by geopolitical tensions, including the protectionist and unpredictable policies of the US administration and security threats in Europe and worldwide. The recent UK-EU security and defence pact, as well as the Germany-UK friendship treaty, have also played a role in creating new confidence in bilateral relations.
However, the survey also showed that trade volume between the two countries has fallen by around a third since the Brexit referendum in 2016. In response, German companies are calling on both the British and German governments to make efforts to facilitate trade cooperation between the two countries. 60% of companies are asking the British government to seek improved trade relations with the EU, and 43% are in favour of reducing trade barriers. 55% of companies also ask the German government to use the upcoming 2026 review of the EU-UK trade agreement to achieve better economic conditions.
Despite these challenges, the survey also found that there is lasting optimism about turnover and investment in the German-British corridor. 48% of German companies expect rising turnover in the current financial year, and 72% are optimistic about the next five years. In terms of investment, 31% of companies plan to invest over EUR 5 million in the UK by 2030, with 8% planning to invest over EUR 100 million.
The survey also highlighted new areas of cooperation between the two countries, with 45% of respondents seeing opportunities in digitalisation, 43% in security and defence, and 29% in research.
However, the ongoing impact of Brexit continues to weigh on the economy, with 32% of companies reporting burdens from the introduction of the Electronic Travel Authorisation (ETA) system in 2025, and 23% anticipating significant consequences from changes to immigration rules. On a positive note, the survey found that the import control system introduced in 2024 has now been absorbed and only affects 18% of companies.
In conclusion, the survey’s results suggest that while there are still challenges to be overcome, German companies are increasingly optimistic about their future relations with the UK. “The upcoming review of the Brexit agreement offers the chance to shape economic relations more positively for the future and thus to respond to the rising geopolitical tensions globally,” says Andreas Glunz, Managing Partner International Business at KPMG in Germany.
The full results of the “German-British Business Outlook 2025” can be found here.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.