London and Berlin pledge to strengthen trade and investment links

Economy & Politics | International | South East

London and Berlin have pledged to strengthen business links between the two European capitals by announcing an extension of a partnership agreement signed by both city’s trade and investment agencies last year.

The city-to-city agreement has been renewed to coincide with a virtual event marking the 20th anniversary of the twinning of the two cities, involving the Mayor of London Sadiq Khan and Governing Mayor of Berlin, Michael Müller.

The two City Mayors will address an audience of global business leaders, policy makers and entrepreneurs, where they will call for greater collaboration between the two cities on post-Brexit trade and tackling joint challenges such as climate change and the global pandemic.

The extended partnership will see the two city’s official trade and investment agencies, London & Partners and Berlin Partner, continue to work together to facilitate business opportunities for companies across both regions.

Both organisations will collaborate to offer London and Berlin businesses greater access to local government, investors and corporate partners offering tailored advice for companies looking to setup up or expand their operation in each city. They will target help at start-ups and scale-ups with a focus on areas of mutual strength such as smart cities, life sciences, artificial intelligence, fintech and creative industries.

London shares a strong trade and investment relationship with Berlin and the rest of Germany, with latest figures compiled by London & Partners showing that London is a leading global destination for Berlin businesses looking to establish a base outside of Germany – second only to Paris.

Over the past five years, German companies have created over 5,378 new jobs and £2.1bn worth of investment for London’s economy. Some of the largest German companies to invest in London over that time period include engineering giant Siemens and global sports brand Adidas, as well as Berlin tech unicorns, Hello Fresh and Zalando.

Germany is also an attractive destination for London companies looking to expand into mainland Europe, with latest data showing that the UK capital was the number one global source city for foreign direct investment into Germany over the past five years. Berlin is the number one city for foreign direct investment from the UK, ahead of Frankfurt and Munich.

Mayor of London Sadiq Khan said: “Our two great cities share European values of inclusivity, creativity and innovation. In light of the global pandemic and common challenges such as climate change, there has never been a more important time for us to work together. I am determined to strengthen the economic links between London and Berlin and develop exciting opportunities for trade and investment. Like Berlin, London is an outward looking, global city and regardless of the final outcome of Brexit, London will remain open to talent, investment and collaborations with Berlin and other European cities.”

Governing Mayor of Berlin, Michael Müller added: “London and Berlin have been twinned with each other for 20 years. The cooperation and exchange is of high added value for both cities and is supported and promoted by civil society and many other actors from business, culture, sport and science. It is a common concern of ours to promote the European community of values, peace and freedom in Europe. Brexit will not change that. On the contrary, our friendship will grow and the exchange will become more intensive. Where serious problems like the pandemic have to be solved, our metropolises offer incubation spaces for innovation, so that the challenge also creates opportunities.”

London and Berlin are two of Europe’s leading tech hubs, with latest data from Dealroom.Co showing that the capitals are ranked as the top two cities in Europe for producing unicorn tech companies.

With thriving start-up ecosystems, both cities have also attracted high levels of international investment, with additional research showing that London ($9.2bn) and Berlin ($4.5bn) attracted more venture capital funding than all other European cities last year.

As part of the ongoing agreement, the two cities will continue to share knowledge and best practices on the digitisation of cities and work with the technology community to tackle common urban challenges such as air pollution and smart mobility.

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