Employing staff in the UK to run a private business has just got a lot harder and more expensive.
Wages and employer contributions are higher in Germany.
The problem is we have always failed to make capital investment. Germany has consistently maintained investment in physical assets & equipment for manufacturing.
In the uk a massive chunk of our "capital investment" in the private sector is made by banks and they are not investing in useful fixed assets like machinery. Its more likely to be software, or real estate.