Engineering news
Britain cannot afford to leave the European Union, manufacturers' organisation the EEF has warned, as the Prime Minister's long-awaited speech on the UK's relationship with Europe looms.
Britain’s priority should be to reshape the European Union to help make it work better for Britain, the EEF said. But chief executive Terry Scuoler warned: “The politics of our relationship with Europe have always been complicated but the government must rise above this and do what is best for growth, jobs and investment. The UK’s economic well-being is heavily linked to our biggest trading partner and we cannot afford to risk the disruption that leaving the EU would cause.”
The government’s focus should be on working from inside the EU to ensure it does more to generate growth, jobs and investment in Britain rather than raising doubts about our future in Europe when UK businesses already face so much uncertainty, the EEF said. Prime Minister David Cameron has raised the possibility of a referendum on any changes to Britain's position within the EU. Some fear this could mark a slide toward a vote on membership of the union.
The EEF said the government should take advantage of any opportunity to renegotiate a better deal for Britain as part of any negotiations on potential Treaty changes, but this should be done in a way that helps rather than obstructs the eurozone to deal with the massive challenges it faces.
Scuoler added: “However, there is no doubt that the EU needs to change if it is to succeed in the global race. This means putting competitiveness, jobs and growth at the heart of its agenda. We are starting to see signs of change and now is not the time to walk away from this process. Rather than raising doubts about our future in Europe, the government should focus on making it work better for Britain.”
The EEF set out its current position for remaining within the EU on the following basis:
1. The UK’s access to EU markets – which represent 46% of UK exports – and to markets around the world through trade deals negotiated as part of the EU, and a significant part of the inward investment we receive, are all dependent on being part of the EU. Even though there are theoretical arguments that we could enjoy some or most of these benefits without being a (full) EU member, we cannot currently afford the disruption and uncertainty that leaving the EU would cause.
2. The EU needs, however, to work better for British business and British people. The best way we can make it work better is working closely with the rest of its members from a position within the Union. EEF has worked with its partner organisation in Europe to develop a strong manifesto for growth and deregulation to make Europe a more competitive place to do business. We also need to be active players in Europe to influence key decisions on trade deals with the rest of the world, complete the single market, and influence EU decisions on energy and climate change policy.
3. Through our relationship with the EU, we should look to reduce the level of regulation affecting the whole of the EU (and push for better regulation). The EU is a key market and we need it to be a more dynamic one. However, if the government was able to extract concessions for Britain as a result of a future Treaty change, these could be welcome but, should be won through constructive negotiation, not through threatening to obstruct necessary progress on resolving the eurozone’s problems or threatening to leave the EU.