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Leaving Europe would be bad for British business Leaving Europe would be bad for British business
(4 months later)
This week's political demands for a bill to underpin the prime minister's promise of an EU referendum have been a distraction from securing growth and jobs, which have to be the UK's top priority. On Friday, when I speak at the British-American Business Council, I'll be laying out the case to re-focus on economic growth – both at home and abroad. And the best way to achieve that is to keep a firm foothold in European trade at the same time as increasing exports elsewhere in the world.This week's political demands for a bill to underpin the prime minister's promise of an EU referendum have been a distraction from securing growth and jobs, which have to be the UK's top priority. On Friday, when I speak at the British-American Business Council, I'll be laying out the case to re-focus on economic growth – both at home and abroad. And the best way to achieve that is to keep a firm foothold in European trade at the same time as increasing exports elsewhere in the world.
Just as the prime minister was trying to do the right thing in Washington – showing leadership on the transatlantic trade and investment partnership and highlighting the positive value of the EU – back home, that focus was lost.Just as the prime minister was trying to do the right thing in Washington – showing leadership on the transatlantic trade and investment partnership and highlighting the positive value of the EU – back home, that focus was lost.
The recent tussle presents an inward-looking picture of British politics to the outside world. For those in business, it feels like a diversion from what we should be doing in Europe: restoring growth through trade deals; and championing reforms that we want to make all of Europe more competitive. These issues matter to the public too because their main concerns are about the economy, jobs and the cost of living.The recent tussle presents an inward-looking picture of British politics to the outside world. For those in business, it feels like a diversion from what we should be doing in Europe: restoring growth through trade deals; and championing reforms that we want to make all of Europe more competitive. These issues matter to the public too because their main concerns are about the economy, jobs and the cost of living.
The demands for a bill to underpin what the PM had already promised don't actually move the debate forward. David Cameron had already set out his terms for a referendum by 2017 on continued membership of a reformed EU. We already had clarity over the process – if not the outcome.The demands for a bill to underpin what the PM had already promised don't actually move the debate forward. David Cameron had already set out his terms for a referendum by 2017 on continued membership of a reformed EU. We already had clarity over the process – if not the outcome.
Business has to make the nuts-and-bolts case for what our relationship with Europe should look like. Maintaining our influence over, and our access to, the single market will be central to that. We have to focus on a positive vision of reform so Europe does less of the things we don't want, and more of the things we do: boosting competitiveness and resisting bad policies that work against growth and stability. Let's be clear: being a member of a reformed EU is the best way to preserve market access.Business has to make the nuts-and-bolts case for what our relationship with Europe should look like. Maintaining our influence over, and our access to, the single market will be central to that. We have to focus on a positive vision of reform so Europe does less of the things we don't want, and more of the things we do: boosting competitiveness and resisting bad policies that work against growth and stability. Let's be clear: being a member of a reformed EU is the best way to preserve market access.
There are some who say that we could retain access to the single market without being a member of the EU; that the UK could withdraw and have a relationship more akin to Norway's or Switzerland's. I'd urge them to really look at the detail.There are some who say that we could retain access to the single market without being a member of the EU; that the UK could withdraw and have a relationship more akin to Norway's or Switzerland's. I'd urge them to really look at the detail.
Norway's membership of the European Economic Area (EEA) – being outside the EU but part of the single market – means that it still pays the bills and follows the rules but has much less influence on EU decision-making than if it had a seat at the table. As the Norwegian Conservative MP Nikolai Astrup said to my team during their recent fact-finding mission to Norway: "If the UK wants to run Europe, it needs to be in Europe. If you want to be run by Europe, feel free to join us in the EEA."Norway's membership of the European Economic Area (EEA) – being outside the EU but part of the single market – means that it still pays the bills and follows the rules but has much less influence on EU decision-making than if it had a seat at the table. As the Norwegian Conservative MP Nikolai Astrup said to my team during their recent fact-finding mission to Norway: "If the UK wants to run Europe, it needs to be in Europe. If you want to be run by Europe, feel free to join us in the EEA."
While this works for Norway's economy, the British would never accept such a relationship. It removes none of the issues identified as problems by those who want to leave the EU. And while Switzerland appears to have greater flexibility to pick and choose the EU regulations it applies, the 120 or so agreements that govern the EU-Swiss relationship took years to negotiate from the point at which it rejected the terms of the EEA in the early 90s.While this works for Norway's economy, the British would never accept such a relationship. It removes none of the issues identified as problems by those who want to leave the EU. And while Switzerland appears to have greater flexibility to pick and choose the EU regulations it applies, the 120 or so agreements that govern the EU-Swiss relationship took years to negotiate from the point at which it rejected the terms of the EEA in the early 90s.
At a time of great economic challenge, could UK businesses struggling at the margins survive without access to our primary market for an unknown period? Submitting to rules without the power to influence them is not my idea of much-touted greater sovereignty.At a time of great economic challenge, could UK businesses struggling at the margins survive without access to our primary market for an unknown period? Submitting to rules without the power to influence them is not my idea of much-touted greater sovereignty.
The debate over our future relationship with Europe is a worthy and valid one, but we must maintain our perspective. What we need now is economic growth and jobs across the European continent. That means putting all hands to the pump to boost our competitiveness in the international arena and getting some major trade deals signed on the dotted line.The debate over our future relationship with Europe is a worthy and valid one, but we must maintain our perspective. What we need now is economic growth and jobs across the European continent. That means putting all hands to the pump to boost our competitiveness in the international arena and getting some major trade deals signed on the dotted line.
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