BERLIN (Reuters) - Germany's VDMA engineering association on Friday said the unclear political situation in Britain would complicate negotiations on its departure from the EU, and failure to reach a deal in the two-year timeframe could seriously impact trade.
"The unclear political situation in Britain will make Brexit negotiations even more difficult. That is bad news for German engineering firms," said Thilo Brodtmann, who heads the trade association.
"The future British government will not have a clear majority and therefore will have little room for manoeuvre in the negotiations," he said in a statement.
Given the election outcome, Brodtmann said it would be difficult for Britain to begin negotiations with the EU as planned on June 19, which increased the risk that no agreement would be reached within the two-year period.
VDMA said trade could be seriously affected and perhaps halted if Britain and the European Union failed to reach an agreement within the designated two-year negotiating period.
Reporting by Andrea Shalal; Editing by Michelle Martin