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Businesses urge Cameron to tame Euroscepticism

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Published 20 November 2012, updated 15 January 2013

Britain would damage its fragile economy and risk isolation if it ended its often stormy relationship with the European Union, business leaders said on Monday (19 November) before critical EU budget talks later this week.

Britain's main business lobby group urged Prime Minister David Cameron to resist growing "Eurosceptic" calls to cut the island nation's 40-year ties with a bloc that accounts for half of its trade.

With the anti-European mood growing, opposition Labour leader Ed Miliband pledged not to let Britain "sleepwalk" towards an EU exit that he said would be bad for prosperity and a betrayal of Britain's national interests.

Anti-EU lawmakers in Cameron's own Conservative party have urged him to take a hard line in the budget talks and resist EU demands for a real increase.

They sided with the usually pro-EU opposition Labour Party late last month in a parliamentary vote calling for a real-terms EU budget cut, an embarrassing defeat for Cameron.

Britain, a member of the 27-nation bloc since 1973 but not of its single currency, has long had an ambivalent relationship with the EU.

The next general election is due in 2015 and Cameron, trailing in the polls during a painful austerity drive, has threatened to veto the EU's long-term budget plans. He has called for a real-terms spending freeze that reflect the economic hardship facing millions of people across Europe.

"It is like many relationships: can't live with you, can't live without you," Roger Carr, president of the Confederation of British Industry, said in a speech at the CBI's annual meeting. "Whatever the popular appeal may be of withdrawal, businessmen and politicians must keep the bridge to Europe firmly in place."

Describing Europe as the "bedrock of our international trade", Carr said the European single market is a crucial export market as well as a strong base for Britain's trade with the rest of the world.

'Good European'

Criticised by some in Europe for a lukewarm approach to the EU, Cameron said his calls for tighter spending controls made him "a good European".

"I feel I have got the people of Europe on my side in arguing that we should stop endlessly picking their pockets and spending more and more money through the EU budget," he said in a speech to the CBI's annual conference.

Labour's Miliband, accused of opportunism for backing the Conservative rebellion over Europe in parliament, said he would not allow Britain to "sleepwalk toward [an EU] exit". Labour has been broadly pro-European in recent years.

Betting agency William Hill offered odds of 10-1 that Britain will be out of the EU by 2020.

Cameron's spokeswoman said Britain, a net contributor to the EU budget, thinks a deal can be reached.

"The prime minister believes we can work through these details to get the right deal at this week's summit and we're ready to do that," the spokeswoman said, adding that Cameron had been "hitting the phones" speaking to other EU leaders.

Next steps: 
  • 22-23 Nov.: Special EU budget summit
EurActiv.com with Reuters

COMMENTS

  • So now we have it soon !
    Instead of thinking one second that Euroscepticism doesn't lead to nothing and nothing again ! And even Mr Farage and his Party knows that !

    To UK European :

    And only by ignoring a little that party which speeches related always about that same subject!
    EU / Scotland

    By :
    an european
    - Posted on :
    20/11/2012
  • Cameron and the UK ought to pack up their "financial services" parasites and LEAVE.

    By :
    david tarbuck
    - Posted on :
    20/11/2012
  • Why aren't british main buisness lobbies seizing their opportunity to trade alone across oceans with other integrating continents rather than with Britain's own one, 20 miles away which happens to be the first market in the world?

    By :
    UK-skeptic
    - Posted on :
    21/11/2012
  • As a wealth creator, small though I may be, I doubt that trade with Europe will be affected one jot if the UK chooses a divorce. The only reason my customers buy from me is that (1) I sell a product at quality that they want, (2) that product is at a price they are prepared to pay and (3) I provide a reasonable service to go with the product.

    You cannot seriously tell me that if the UK leaves the EU then my customers in Holland, Germany and France will suddenly cease to buy from me! The notion is preposterous. Or are we being threatened with a trade embargo?

    Any customer wherever they may be in the World, if I offer them an acceptable quality product, at an acceptable price and offer an acceptable service then the customer will buy from me. The World is a big place and my experience is that the UK can hold its own. The CBI is scaremongering - looking after vested interests - it doesn't represent my business, nor any other exporting business I know!

    By :
    Hard-working stand-up guy
    - Posted on :
    22/11/2012
  • Hard-working etc... Given that the disindustialised UK has the worse trade deficit, the problem for the british economy outside of the Single market won't be about going on exporting the few things it still manages to produce and sell to Europe (between 4% and 6% of imports in each european countries come from the UK) but rather to import at a reasonable price (since over 50% of the UK's purchasing needs coming from the EU). How would even Benelux be replaced, since it already is a bigger trading partner than the US for Britain, with a population alltogether 10 times smaller?

    The world is a big place, true, and as you may have noticed in your experience, it is increasingly integrating into protectionist continental blocs (North/South America, China, India, Russia, Africa, South-Asia-Pacific), hard negociating at the WTO within 6 or 7 markets each with a population of in between 500/1500 milions. Of these markets the EU not only is the strongest and happens to be lying 20 miles away from the british coasts, it is the most or the only liberal bloc, partly thanks to british input, advocating for free trade allowing your products to fairly competete with others worldwide. Are you saying the UK should leave the EU to in fact sign up the same agreements with it as it use to enjoy in (why is that all for then?) and at the end of the day defend the same positions abroad, just with a market 10 times smaller as a bargaining argument?

    Does this idea seem to you such a wise plan, as a traditionaly reasonable and realistic trading buisnesssman?

    By :
    UK-skeptic
    - Posted on :
    22/11/2012
  • UK-Skeptic,

    Europe needs us more than we need them, they will still want to sell goods to us regardless of whether we divorce. The current balance of trade is in their favour - all the more reason for them to value us. We have been conditioned to think our future lies only with Europe - I say no - there is a big exciting World out there and we have the intellectual capacity to compete. We need to get on our bikes and pedal around those customers and do what we have historically done ... trade with the World.

    We already have a trading block to use as a springboard in to the global economy ... it's called the Commonwealth! Our common heritage with all of North America, large chunks of Africa and the Far East will takes us further than the EU ever did. The EU marriage has made the UK somewhat uncompetitive, so dispensing with what is clearly a dying trading block (held back by unelected bureaucrats arguing about the shape of bananas or some other such rearrangement of the deck chairs) is in my opinion the way to go. Federal Europe is the only option? No thank you very much! Did we learn nothing from the USSR?

    As for our World bargaining position, who really cares? We have always been a tiny little nation that can punch well above it's weight. Let's have a bit more of the privateering spirit - we have done it before - we can do it again.

    By :
    Hard-working stand-up guy
    - Posted on :
    22/11/2012
  • Hard-working, ...except that historically everyone in the Commonwealth divorced the UK before Britain eventually married with the EU. Americans, Indians and Africans haven't so far seemed to be regreting Britain and the UK happens to be the only nostalgic one of previous marriages. The countries having divorced you before you joined the EU aren't anyway ready to offer you the same access to their markets, as you enjoy in the single market, and even if they would want to, you'd have difficulties finding such a rich and develloped market, with qualified workforce and infrastructure, as well as democratic standards as in the EU, which accounts by itself for over 20% of the world's economy. Your senario of former colonies which couldn't wait for Britain to leave the EU is unrealistic as they would probably think you are just being economically mad! They may recall from the colonial times a different story, as what you call a long british "tradition of trade in the world".

    Your new Commonwealth strategy of reconquest would require decades and decades of readapting for the british economy in order to fit a hypothetical bloc at the other side of the planet Britain would instead be integrating, instead of the already powerful EU next door. Honestly a bit like Berlin with the USSR, you'd have to transform at least the whole of Ireland to make it an enormous airport fitting your new economical needs being sieged in Europe?) doesn't look like you are in charge of a lot of money indeed in your export buisnesses. You may not have up-dated your datas since the USSR.

    Let me tell you that if the EU was economically "dying" as you say, Britain would be one of the most hit country as the UKs economy and the City are much more dependant on the EU than many other EU countries.

    By :
    UK-skeptic
    - Posted on :
    22/11/2012
  • UK-Skeptic,

    I hear what you are saying, but it does not correspond with my personal business experience. My business partners overseas are pretty forthright on the subject. Over the past 20 years I have earned money for this country (and of course myself) from the USA, Canada, India, Malaysia, Australia and New Zealand - as well as various European countries. I trade wherever there is an opportunity, indeed, my company (modest though it may be in your eyes - not that you would actually know) is currently negotiating a fairly substantial 3 to 5 year contract with Iraq - with an Iraqi partner who prefers to deal with British companies and British technology, so I think my view is grounded in reality.

    Take decades to re-establish? I'm not at all convinced by your statement. What I am sure of is that the malaise affecting Europe will certainly take at least a decade to just get on an even keel - if at all. Europe is drowning itself in EU regulation. recognise it and move on ... the World beckons! Please excuse me if I don't reply to any more of your posts ... only I have money to earn!

    By :
    Hard-working stand-up guy
    - Posted on :
    22/11/2012
  • To Hard-working stand-up guy:

    "Europe is drowning itself in EU regulation."

    Without regulation the common market could not work. Creating the ground rules in Europe is what allowed nation states to trust each other, lowering national tariffs, cutting protectionist national regulation and opening up their economies, creating the world's largest and most successful free Trade area. It didn't happen by accident. Where else in the world have previously warring nation states shown this level of commitment and compromise?

    As you say, businesses in Britain, a leading member of the EU, continue to trade wherever there is an opportunity, both in Europe and accross the world. It's a win win situation for any trading nation. Countries such as Germany, Holland, Sweden are strong exporters and job creaters, the rules and regulations you talk of are not holding them back.

    Why the panic? Is British culture being swamped by Czech, German, Spanish, Belgium or Finnish culture? When you walk down a British high street, do you see signs of an invasion?

    And how could leaving the EU insulate Britain from what is happening on the continent? Britain would still be signing up to everything Brussels throws at them, just without a seat at the decision making table.

    By :
    James G
    - Posted on :
    23/11/2012
  • @ Hard-working... You say "I hear what you are saying, but it does not correspond with my personal business experience." Well it could simply be that the situation for the whole of the UKs trade is slightly different from the particular determinants at work in your personal buisness, that's all.

    I guess Britain has also been trading wherever there was an opportunity with 50% of its imports-exports with the Single market, where the common rules allow british buisnesses free access to all markets and no tariffs. You'd never get such an offer anywhere else. But if Britain were more competitive than Germany, austria, holland, belgium, finland, Sweden, France or even Italy, it would already export more, under the same regulations, to the US, to China and to the rest of the world than these countries now do.

    For sure if you no longer fancy applying these common rules and decide to leave the Single Market, there is no reason member countries would continue offering Britain the same deal. Outside the EU, the only way the UK could enjoy the same trading facilities with the Single Market would be to sign a treaty forcing it to apply the same rules as before, just no longer deciding them in Brussels (like EU satelites Norway or Switzerland).

    But you'd leave the EU for independance right, not to become one of its satelite? So leave the Single Market, re-establish barriers and boarders, reject free trade, and try out your lonely way in the world, it's your decision, but don't queue up in Brussels the next day, to apply for the same status and trading conditions back in. What would all that be for then?

    By :
    UK-skeptic
    - Posted on :
    23/11/2012
  • What is wrong with you people? All I have said is that "in my personal experience", as a business owner, membership of the EU is more of a hindrance than a help. I offer nothing more than another perspective, based on actual every day experience.

    In my opinion, another bloated bureaucracy (to add to the one we already have to suffer), additional layers of cost and tax burden foisted on me by the EU do nothing to help me export to the rest of the World. Question : how much do you export? Where is your productivity? where is your intellectual input into the World - or are you just empty words on a digital page in the ether?

    Again, my personal view is that the EU is a bust organisation. When in it's history did it's auditors give it's accounts a clean bill of health? Where else could you get away with that? Only in a banana republic or dictatorship. No, wait a minute, the EU is a dictatorship - silly me - it's the dictatorship of the unelected and unaccountable. In whose reality, in these straightened times, it is a good idea to spend how many millions of [my] tax money building a vanity project like the laudable Museum of European History? Ye God's, it's bad enough with our own crop of career politicians, without adding more - particularly the more prevalent socialist and often former communist versions found in Brussels! I am sure with a little research I could go on ad nauseam, but I'm also sure I would lose the will to live if I did!

    Get a life - try earning a living by getting out there and hustling, and when you have, contact me again and we will compare experiences. In the meantime, as I said before, I have a living to earn.

    By :
    Hard-working stand-up guy
    - Posted on :
    23/11/2012
  • As Hard-working thinks the EU is a dictatorship, he really seems to be a weird trade analyst, and I wouldn't let him with such a biaised approach of the world's economy, invest the slightest penny of my own savings. He merely appears to be judging the benefits of the UKs membership in the Single-Market, in terms of how much the UK contributes to the budget (though it already has a discount rebate). Britain may not contribute at all to the budget outside of the EU and save this way a couple of bilions, but there are as well hundreds of bilions the UK would't anymore see in return, if it decides to leave the single market, not contributing to its budget and not applying Brussels common rules.

    For a tradesman, Hard-working really needs to start counting bilions right. Even if salaries of bloated eurocrates, as he calls them, would be doubbled, that wouldn't make any difference in british trade figures or deficit. Hard-working is counting apples with bananas, which does look pretty strange for a buisnessman. Maybe that's why he is that buisy after decades of work, still trying to make money for earning his living. I myself have enough to live off materially out of my own properties, to enjoy the job I do and the life I have, only with intellectual concerns. Maybe when his exports will be successful enough to allow him to think 5 minutes about something else, we'll be able to have that discussion.

    By :
    UK-skeptic
    - Posted on :
    23/11/2012
  • @Hard-working poster
    Try trading from outside the Common External Tariff wall. I guarantee that you'll find it a lot tougher.

    As for the old budget canard, the accounts for the EU institutions are internally and externally audited and have been signed off for the past 15+ years. They are all published on the web.

    The accounts for EU cash spent by the Member States haven't however been signed off as there's something like a 3% rate of anomalies. Interestingly enough, Britain is one of the serial budget offenders in terms of non-compliance.

    By :
    Patrick
    - Posted on :
    23/11/2012
  • The European Community is a community of shared culture and values. British culture came from Europe. And Britain has grown and benefited from the modifications and adaptations it has made to this culture over the centuries. Above all Britain has kept the BALANCE OF POWER IN EUROPE.

    Europe would benefit - and would have benefited in the past - from a strong British presence. Many of the Brussels bureaucratic nonsenses could have been stifled at birth. What should happen now is for Britain to present a comprehensive package of proposals for REFORM TO ALL ASPECTS: not just budget, but structures and staffing and procedures and policies in all areas. This to be traded for a once and for all decision on membership.

    By :
    mamiemoo
    - Posted on :
    12/12/2012
Background: 

The eurozone debt crisis has rekindled an anti-European mood in Britain and emboldened politicians to talk of clawing back powers from Brussels, or even leaving the bloc altogether.

British Eurosceptics, who see the EU as an oppressive, wasteful superstate that threatens Britain's sovereignty, want a referendum on whether to stay in the EU. Prime Minister David Cameron opposes a straight "in or out" question but has hinted he would support a national vote on a renegotiated British role.

More than 50 Conservative rebels defied Cameron to vote with Labour to call for a real-terms cut in EU spending in a stinging parliamentary defeat for the government on 31 October.

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