Brexit to cost Polish companies up to EUR 353 mln in H2 2021

Britain's exit from the European Union is set to cost Polish companies up to PLN 1.6 billion (EUR 353 million) over the second half of 2021, insurance firm Euler Hermes has estimated.

The company said Polish companies would have to seek replacement customers in other markets to make up for losses expected in the latter half of the year.

Tomasz Starus, a Euler Hermes management board member responsible for risk assessment, said that "the effects of Brexit in its current form are above all the sight of traffic jams, lorries stuck in queues at the border and tired drivers - or the losses of hauliers as well as the losses of deliverers of food products which do not tolerate prolonged transportation."

In Starus's view, "other losses will be of a more lasting nature", he said, citing administrative difficulties and disruption to supply chains, including changes to deliveries mostly affecting the machinery and electrical industries, including automotive parts producers, vehicle manufacturers and the producers of consumer goods such as furniture.

He added that the food sector in the second half of 2021 could see estimated losses of PLN 125 million (EUR 27.6 million).

With the UK being Poland’s number-two export market, Poland, Starus added, like all EU member states, will have to look to other markets to compensate.

Euler Hermes said British businesses would be the most affected by Brexit with UK exporters losing as much as GBP 25 billion (EUR 28.23 billion) over the whole of 2021.