German economic associations have warned of severe consequences for businesses if the US government undermines the data agreement with the EU. These concerns stem from recent threats made by US President Donald Trump against NATO partners, which have cast doubt on the reliability of commitments.
Holger Lösch, deputy managing director of the Federation of German Industries (BDI), told the “Handelsblatt” (Tuesday edition) that a reliable and legally secure transatlantic data flow is crucial for German industry. He warned that a collapse would have “devastating consequences” for both companies and authorities, leading to “excessive additional effort and legal uncertainty”.
The German Chamber of Commerce and Industry (DIHK) also anticipates “grave” repercussions. According to Stephan Wernicke, chief legal counsel at the DIHK, businesses of all sizes-from large corporations to startups-operating in the EU and partially in the US would face legal uncertainties and potential liability risks. He stated that transatlantic data transfer is “indispensable” for the European economy.
The situation is considered particularly precarious due to the reliance on US providers. Dirk Jandura, president of the German Federation of Retail and Wholesale Trade (BGA), told the “Handelsblatt” that almost 90 percent of all companies in Germany purchase IT services from foreign sources, predominantly from the United States. He called attention to this vulnerability and advocated for diversifying dependencies, although he conceded that European alternatives currently do not possess sufficient capacity in the short term. Lösch and Wernicke advised companies to take preventative measures by utilizing EU Standard Contractual Clauses. However, Wernicke noted that using these clauses is associated with “considerable” bureaucratic effort.