A survey of 2,500 senior executives in the UK, France, Germany and Spain has revealed most companies believe that the UK’s relationship with the EU would maintain some core principles, such as the free movement of people.
However, the European Commission has warned companies across the bloc to prepare for border friction and additional costs after the UK leaves the EU’s valued added tax (VAT) area.
According to the consulting firm, FTI, the findings of the survey, which was conducted online in December, reveal a misreading of the political reality.
Hans Hack, a member of the FTI’s Brexit task force, said: “Certainty remains in short supply with little prospect of companies getting comfort on the future trade agreement any time soon.”
This comes as EU-UK relations have deteriorated over the EU position paper on Brexit transitional arrangements.
The commission said UK companies operating in the EU could be forced to employ someone to handle VAT payments in the bloc.
If the UK does not succeed in negotiating a VAT agreement with the EU before leaving the bloc, nearly 3 million UK small businesses will have to start paying VAT sales on EU customers.
Business chiefs have warned they soon need to make big changes to their operations to prepare for the UK’s EU departure.
The UK’s government cabinet met last week to discuss the future UK-EU trade relationship but did not agree a final position on what the relationship should look like.
Foreign Secretary Boris Johnson will do a speech this week laying out his vision of Brexit as Mrs May tries to unite her party and not bow down to the demands of Brussels.