CBI Chief Urges Economic Reform For European Union

by Robin Pilgrim, LawAndTax-News.com, London

25 October 2005

Sir Digby Jones, Director-General of the CBI on Monday urged EU leaders to accept the case for economic reform if they are to deliver wealth and prosperity for their citizens in the era of globalisation.

Speaking to business leaders at the CBI’s annual Manufacturing Dinner in Birmingham, he suggested that Prime Minister Tony Blair must stick to his principles in championing root and branch reform of the EU’s economic and social models.

His call comes ahead of a meeting of the 25 EU heads of government on Thursday to discuss ‘the opportunities and challenges of globalisation’. The gathering comes more than halfway through in the UK’s six-month Presidency of the EU.

Sir Digby Jones argued that:

“The ideologies of Old Europe have condemned hundreds of millions of people to the economic slow track while the US has accelerated into the distance, with India and China coming up on the rails. The only way for Europe to get into the globalisation game is through radical surgery on the policies and ideas that have dominated for too long."

"The challenge for Tony Blair is to persuade his fellow premiers of the virtues of fundamental change to end the under-performance of the EU and transform it into a thriving economic powerhouse. The jury is currently out on the success of the UK’s Presidency - the remaining two months will be vital and while the budget debate has been shelved until December it will be the ghost at the table in Hampton Court. “

"If our European partners continue to resist the necessary reform, it is better for the UK to fight for a meaningful agreement rather than to reach an unsatisfactory compromise in December that will serve no-one in the long term. No deal will be better than any old deal.”

He concluded by observing that:

“With crunch World Trade Organisation talks in Hong Kong this December, the Prime Minister must this week convince his fellow leaders that brave decisions to open up Europe’s economy to fair competition are the only ones that will serve Europe’s citizens in the long term."

"Just last week the EU trade commissioner was accused by the USA of doing too little to cut tariffs for farmers – while the French accused him of going too far. How can the EU hope to strike an ambitious, meaningful, global trade deal in Hong Kong when some member states seem determined to remain firmly rooted in the economic ideology of the past?”

“Reform, not least of agricultural subsidies and protectionist tariffs, is vital to opening up the EU to genuine, free and fair trade with the rest of the world – from which Europe’s people can only benefit.”

Recommended