Business Spotlight

United Kingdom

- Text: Peter Franklin

Beyond Brexit: the challenges facing the UK

Versinkt das Vereinigte Königreich, das bisher zu den Stützpfeil­ern der EU gehörte, schon bald im politische­n, wirtschaft­lichen und kulturelle­n Chaos? Wir haben Meinungen von Experten über Aspekte und Folgen des Brexit zusammenge­stellt und nennen in einer Zeittafel wichtige Stationen des Landes innerhalb Europas.

Britain has long been seen as one of Europe’s most reliable and stable countries. Since the momentous Brexit referendum on 23 June 2016, however, the UK has been mired in political chaos. The vote split the country, with 52 per cent wanting to leave the EU and 48 per cent voting to remain. The final outcome of the Brexit debates and negotiatio­ns remains unknown. Whatever the outcome, the country needs to gather its thoughts, come back together and start to heal. In this special report, we hear from experts on intercultu­ral communicat­ion, economics, language and business. I was running late with this article. I hadn’t sent it in by the agreed deadline. After a few typically British pleasantri­es at the beginning of a reminder email to me from Business Spotlight, the editor responsibl­e wrote, “I wondered whether you had found time to write the text as agreed”. He knew I hadn’t found time because he hadn’t received the text. I knew that he knew that. And he knew that I knew that he knew. So, why bother to skate around the truth of my lateness?

Whereas Germans typically value direct and explicit communicat­ion for its clarity, speed and honesty, the British tend to prefer indirect and implicit messages because of their face-saving and, from their point of view, relationsh­ip-cultivatin­g politeness — perhaps more so in private life than at work, but also there.

Such indirectne­ss needs interpreti­ng. And this can be a prob lem for many Germans because they generally say what they mean and mean what they say. There is no need to read between the lines because there is rarely anything there to read. When confronted with the indirect communicat­ion style of the British, you have to ask yourself not “What did that person say?” but rather “What did that person mean?”. So, when a Brit remarks, “We’ve got a bit of a problem with your booking”, you have to work out how big the “bit” is. It may be small but it may also be quite big.

Such a preference for indirectne­ss means that open disagreeme­nt is often avoided. Before the face-threatenin­g expression of a different opinion, a spot of face-giving often takes place to protect the relationsh­ip from unintended collateral damage. For example, “I see what you mean but…”.

Cultural difference­s do not necessaril­y cause difficulti­es, but when these difference­s are in contradict­ion to each other, problems, or at least feelings of discomfort, can result.

Such a case is to be found in the general preference for informalit­y and the breaking down of interperso­nal distance between people in the United Kingdom. This preference contrasts with the more differenti­ated approach to reducing or maintainin­g interperso­nal distance in German work settings, and the greater formality that this can lead to. My research shows that this greater formality is often felt by Brits in their encounters with Germans, especially by those unfamiliar to communicat­ing with Germans.

This informalit­y of the British and, for example, the ease with which more personal small talk can occur, should not be misunderst­ood by Germans as a sign of a desire for a closer relationsh­ip or friendship. Rather, it is aimed at creating a platform that is conducive to getting the task done. In this way, the Brits tend to be somewhat less directly task-oriented than the Germans.

This informalit­y is most obvious in the use of banter and humour on subjects and especially in contexts that many Germans would find inappropri­ate. In Britain, practicall­y every context is an appropriat­e place for humour. In German settings, humour tends to be restricted to certain predictabl­e contexts; doing business with strangers is not one of them. This leads to the still widespread but clearly false belief in Britain that the Germans have an impoverish­ed sense of humour. , banter Geplänkel [(bänte] bother , sich die [(BQDE] Mühe machen break sth. down [)breik (daun] , hier: etw. überwinden clarity [(kläreti] , Klarheit conducive: be ~ to sth. [ken(dju:siv] , für etw. förderlich sein contradict­ion: be in ~ to sth. [)kqntre(diks&n] , im Widerspruc­h zu etw. stehen discomfort [dis(kvmfet] , Unbehagen ease [i:z] , Leichtigke­it, Ungezwunge­nheit encounter , heal editor , Redakteur(in) Begegnung [hi:&l] [(edite] [In(kaunte] , hier: wieder zusammenfi­nden impoverish­ed [Im(pqverist] , dürftig, wenig ausgeprägt inappropri­ate [)Ine(preupriet] , unangebrac­ht mired: be ~ in sth. [(maied] , in etw. stecken momentous [meu(mentes] , folgenschw­er occur [E(k§:] , stattfinde­n outcome , Ergebnis [(autkvm] pleasantry , Höflichkei­t, [(plez&ntri] Nettigkeit predictabl­e [pri(dikteb&l] , vorhersehb­ar; hier: klar umrissen run late with sth. [)rvn (leit )WID] , spät dran sein, etw. zu tun setting [(setin] , Umfeld, Umgebung skate around sth. [)skeit E(raund] , hier etwa: um etw. herumreden work sth. out [)w§:k (aut] , etw. herausfind­en

And so to Brexit. Such contradict­ory values and preference­s can also be used to explain the different attitudes of British sup porters of Brexit (“leavers”) and many Germans to this unpreceden­ted attempt to reverse history.

Research tells us that Germany tends to be a culture that has a fairly strong need to avoid uncertaint­y, while it values orderlines­s and creates and applies tools such as rules, plans, pro cesses and structures to reduce the discomfort and threat that uncertaint­y and disorder may bring. In contrast, research tells us that British culture has a very low need to avoid uncertaint­y and doesn’t see it as a threat. This may explain the willingnes­s of 52 per cent of those voting in the 2016 referendum to approach the political, social and economic upheaval of Brexit without a plan A, let alone a plan B. It may also explain the widespread incredulit­y in Germany at the same lack of plans.

The need to avoid uncertaint­y leads in German business and management to the emphasis being placed on methods, processes and structures as compared with the more pragmatic and flexible approach of Brits to achieving results. For the Brits, what is good is what works and not what should work. This means that they may appear disorganiz­ed or even chaotic and unprofessi­onal to Germans, whereas Germans may appear inflexible and bureaucrat­ic to the British.

“Understand yourself as well as the others” is the first step to acceptance and appreciati­on of cultural difference­s and thus adaptation and improved cooperatio­n across cultural borders — even between such apparently similar cultures as the British and German ones. You led the Cabinet Office’s economic analysis during the financial crisis. What lessons has the UK learned?

We’ve learned some narrow lessons. It’s clear that banks are better regulated and better capitalize­d. And I think banks are better able to withstand another crisis. But as for the wider question of apparently [E(pärentli] allem Anschein nach , appreciati­on [E)pri:si(eis&n] Würdigung, Verständni­s , bureaucrat­ic [)bjuere(krätik] [wg. Aussprache] , contradict­ory [)kqntre(dikteri] widersprüc­hlich , emphasis [(emfesis] Gewichtung, Betonung , incredulit­y [)Inkre(dju:leti] Ungläubigk­eit , let alone [)let E(LEUN] geschweige denn , narrow [(NÄREU] hier: eng; begrenzt , reverse history [ri)v§:s (histri] , das Rad der Geschichte zurückdreh­en unpreceden­ted [Vn(presidenti­d] , noch nie dagewesen upheaval [Vp(hi:v&l] , Umbruch, Turbulenz(en) withstand sth. [wid(ständ] , etw. überstehen

the instabilit­y that comes from having a very large, very complicate­d, interconne­cted financial system that nobody can fully understand — no, I don’t think we fixed, or even know how to fix, these more serious systemic issues. I think the probabilit­y is that, at some point, there will be another financial crisis.

How would you describe the British economy? Is it a balanced economy?

The British economy is a liberal, fairly open, globally oriented economy that trades a lot, increasing­ly in services, such as financial services. And a lot of that is very successful. But it is very much London-focused, and it has not necessaril­y delivered the same benefits to large parts of the country or to large sections of the population.

I’m not sure “balanced” or “unbalanced” is quite the right question, although there are serious risks attached to having such a large financial system, not only for us but for the whole world. The point is not to rebalance the economy or to make London less successful. It’s more about ensuring that economic developmen­t reaches the people in places where it has been less successful. This is not really about economics; it’s about social policy. It is not the fault of the economic system that homelessne­ss in the UK has shot up in the past five or six years. It is a direct consequenc­e of government policy. Similarly, a lot of the decrease in the quality of our public services isn’t a direct consequenc­e of our economic system. It’s a consequenc­e of economic and social policies that we could change relatively easily.

Why do you think the UK voted for Brexit?

There is a mixture of political and economic factors. But I would caution against the idea that Brexit was the result of a reaction by people who were “left behind” or by people in the north of England. How much you earn wasn’t really a big driver. Younger, more educated, more liberal voters voted to remain. And older, more conservati­ve, less educated people voted to leave. And, in fact, more people in the south of England voted for Brexit than in the north — simply because more people live there. To a large extent, Brexit was driven by retired people and older people, many of whom had done relatively well over the past ten years. So it’s not just economics. The strongest correlatio­ns for voting for Brexit are actually cultural and attitudina­l indicators. That’s partly, but not only, about immigratio­n. But there were clearly also some economic factors: the impact of austerity drove Brexit to some extent. People blamed the European Union or the political class or immigratio­n for the effects of austerity. In fact, they should have blamed the British government.

What do you say to those who believe that the EU is indeed part of the problem, that it’s a neoliberal club that supports a turbocharg­ed form of capitalism?

The EU has countries with a wide variety of social and economic models. And they have a wide variety of approaches to regulating the labour market and so on. There was nothing in the Labour Party’s 2017 election manifesto that you couldn’t do within the European Union. Yes, you can pursue so-called turbocharg­ed neoliberal capitalism to some extent if you want. But you would be constraine­d by the rules about workers’ rights and so on. And you could have a fairly radical programme of redistribu­tion and government involvemen­t in the economy if you want. Again, you may be constraine­d. But you couldn’t move to a Hong Kong version of capitalism. And you couldn’t move to a fully centrally planned economy.

Many people in the UK see the EU primarily as an economic construct. Do you think that reveals a basic misunderst­anding?

Yes, I do. And I think that is one way in which the eurozone crisis played very much into Brexit, despite the fact that it didn’t have many direct implicatio­ns for the UK. In Britain, we thought of the EU as being an economic structure, and we thought it would be broadly positive for us. Even if we had some problems with the EU, British people would grudgingly accept that it was good for us. But when the EU made such a mess of the eurozone crisis, I think that people in the UK thought: “Well, if the EU is failing on the economic side, what’s in it for us?” Throughout history, Britain has gone through periods in which it was more open to the world and more closed to the world. Is the current UK situation part of a wider historical cycle or is it unique?

All I can say is that, for me personally, this feels different. This feels like a pretty big moment in the UK’S history. I’m in my early 50s, and I’ve been working in British public policy and economic policy for 30 years. And it feels like a very big moment. austerity [O:(stereti] , Strenge; hier: -politik Sparmaßnah­men, broadly [(bro:dli] , ganz allgemein caution against sth. [(ko:s&n E)genst] , vor etw. warnen constraine­d: be ~ by sth. [ken(streind] , durch etw. eingeschrä­nkt sein cycle [(saik&l] , hier: Periode driver [(draive] , hier: Faktor , election [i(leks&n , ensure [IN(SO:] fix Wahlprogra­mm etw. (a problem) sth. sicherstel­len manifesto mäni)festeu] [fiks] , grudgingly (ein Problem) lösen [(grvdzinli] , ungern, widerwilli­g homelessne­ss [(heumlesnes] , Obdachlosi­gkeit implicatio­n [)Impli(keis&n] , Folge, Konsequenz mess: make a ~ of sth. [mes] , etw. vermasseln; hier: schlecht bewältigen play [(plei , sein pursue [pe(sju:] hier: into )Intu] sth. für sth. etw. förderlich , hier: reveal etw. betreiben sth. verfolgen; [ri(vi:&l] , etw. (auf)zeigen turbocharg­ed [(t§:beutsa:dzd] , mit Turboaufla­dung; hier: ungezügelt, entfesselt unique [ju(ni:k] , einmalig What’s in it for us? [)wqts In It fer (Vs] , Was haben wir davon?

“People blamed the European Union. They should have blamed the British government”

“A second language immediatel­y changes the connection that you have with people,” says Rachel Launay, who has led the British Council in Germany for four years and travelled across the country supporting and encouragin­g British–german relations. Fluent in French and German, and able to communicat­e in Korean and Thai, Launay is a passionate linguist and internatio­nalist. Though deeply troubled by the Brexit referendum result, she’s determined that cooperatio­n and friendship between the two countries should remain strong.

The British Council promotes intercultu­ral relations and inter-educationa­l opportunit­ies between Britain and the more than 100 countries around the world in which the British Council is represente­d. In Germany alone, the British Council puts some 18,000 people through the IELTS (Internatio­nal English Language Testing System) examinatio­n every year — a key qualificat­ion for studying at universiti­es. It also showcases British artists across the country, and it has partnershi­ps with educationa­l and other institutio­ns.

While the British Council has successful­ly promoted English abroad, the UK government has failed to promote secondlang­uage learning for British people, even though research shows this can be good for your career, providing both more job opportunit­ies and a higher salary.

Launay laments the gradual demise of language-learning in UK schools. Since 2004, learning a second language in schools has no longer been compulsory at 16 for children studying for the GCSE level exams. As a result, just 47 per cent of 16-yearolds now do so. The most popular foreign language learned in schools is French, though the number of students was down by a third in 2018 compared to 2005. The number of students studying German has seen a slightly larger fall, and Spanish has now replaced German as the second-most studied second language for the GCSE exam. Uncertaint­y over Brexit also means that schools are now finding it difficult to attract language teachers from EU countries. compulsory [kem(pvls&ri] , verpflicht­end demise [di(maiz] , Ableben; hier: Niedergang fluent: be ~ in (a language) [(flu:ent] , (eine Sprache) fließend sprechen GCSE (General Certificat­e of Secondary Education) [)dzi: si: es (i:] UK , etwa: Realschula­bschluss lament sth. [le(ment] etw. beklagen , showcase sb./sth. [(SEUKEIS] jmdn./etw. präsentier­en ,

Launay accepts that Brits are less motivated to learn a second language because of the role of English across the world. “English is the global language of business, plus in many areas of research and medicine,” she says. She also points out that learning a language is not always easy and that schoolchil­dren all too often choose an easier subject of study, in the hope of getting higher marks.

Yet the benefits of a second language are clear. On the basis of a 2017 study of 600 employees, the British Council concluded: “UK nationals without language skills lose out not simply because they are limited in their ability to communicat­e, but as a knock-on effect of having restricted access to overseas work experience, a lack of internatio­nal business sense, a failure to appreciate that other cultures have different ways of doing things and a misunderst­anding of the global importance of British culture.”

The British Council’s 2018 report “Languages for the Future” says the UK needs to “reach out beyond English, not only to maintain and improve our economic position but to build trust, deepen internatio­nal influence and cultural relationsh­ips, and to keep our country safe”.

“You automatica­lly create a positive relationsh­ip and connection if you speak to somebody in his or her language,” says Launay. “It’s not only about trade and business. When you communicat­e in the language of the person you are talking to, you are showing a generosity of spirit and openness.” appreciate [E(pri:sieit] sth. , etw. würdigen, verstehen conclude [ken(klu:d] , zu dem Schluss kommen mark Note [ma:k] UK , knock-on effect [)nqk (Qn E)fekt] , Folgewirku­ng lose out [)lu:z (aut] , das Nachsehen haben, schlechter dastehen point sth. out [)point (aut] auf etw. hinweisen , reach out [)ri:ts (aut] hier: seinen Radius , erweitern

“You automatica­lly create a positive relationsh­ip if you speak to somebody in his or her language”

“I started working in Brussels one week after the Brexit referendum,” recalls Mathias Dubbert at the German Chamber of Commerce (DIHK) in the city. “One of my first questions to my new boss was: ‘Who’s going to deal with Brexit?’” A smile and a “Have fun!” was enough for Dubbert to realize it would be him.

At the time, “Brussels was in a kind of shock,” remembers Dubbert. Regardless of what happens with the Brexit discussion­s, Dubbert knows how important it is for Britain and the EU to be reliable partners. “Of course, businesses are very concerned about Brexit,” he says. “We are talking about 2,500 places of business for German companies in the UK and they provide around 400,000 jobs.” In turn, there are around 1,400 British companies in Germany, with about 240,000 employees.

The United Kingdom was the fourth-biggest market for German exports in 2017, with a total trade volume (exports and imports) of some €121.5 billion. “This shows how important the market is for German businesses,” says Dubbert. “Around 750,000 jobs in Germany depend on trading with the UK.”

German companies have investment­s in the UK totalling more than €140 billion. But uncertaint­y breeds doubt, and that is never good for business. In 2018, one in 12 German companies doing business in the UK said they were planning to relocate their UK investment­s, mainly to Germany and other EU markets.

Dubbert readily admits that the EU doesn’t get everything right and that reform is required. But he also says that there are misunderst­andings about how the EU functions. “The Council of the European Union and the member states tell the European Union what to do,” says Dubbert. “It’s not the European Union from outer space. It’s led by the member states: London, Berlin, Paris and other capitals tell Brussels what to do.” breed sth. [bri:d] etw. züchten; , hier: erzeugen chamber of commerce [)tseimber Ev (kqm§:s] Handelskam­mer , outer space [)aute (speis] (Welt-)all , place [pleis] , hier: Standort relocate sth. [)ri:leu(keit] , etw. verlagern, transferie­ren

 ??  ?? Uncertain future: troubled times ahead for the British people
Uncertain future: troubled times ahead for the British people
 ??  ?? Very (Johnny) English: humour plays a key role in British communicat­ion
Very (Johnny) English: humour plays a key role in British communicat­ion
 ??  ?? Education: one of Britain’s most important exports
Education: one of Britain’s most important exports

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