German business associations have issued warnings regarding the serious consequences for businesses should the US government question the existing data agreement with the EU. These concerns have been heightened by recent threats from US President Donald Trump toward NATO partners, which has sown doubt about the reliability of political assurances.
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 essential for German industry”. He noted that a breakdown would have “devastating consequences” for both companies and authorities, leading to “excessive additional effort and legal uncertainty”.
Similarly, the German Chambers of Commerce and Industry (DIHK) anticipates “serious” repercussions. Stephan Wernicke, the Chief Legal Officer of the DIHK, stated that “companies of all sizes-from major corporations to start-ups-in the EU and partly in the US would face legal uncertainties and partial liability risks”. He stressed that transatlantic data transfer is “indispensable” for the European economy.
The current dependency on American providers exacerbates the situation. Dirk Jandura, President of the German Association of Foreign Trade (BGA), informed the “Handelsblatt” that “nearly 90 percent of all companies in Germany purchase IT services from abroad, predominantly from the United States”. He concluded that this dependency presents a definite vulnerability. While calling for a diversification of these dependencies, he admitted that the current capacity of European alternatives is insufficient “in the short term”. For preventive measures, both Lösch and Wernicke advise companies to utilize EU Standard Contractual Clauses. However, Wernicke cautioned that using these clauses is associated with “considerable” bureaucratic effort.
