LONDON — Is British business fretting about the risks of the country drifting out of the European Union? Or does it crave a looser relationship with Continental allies, one free from meddlesome regulation?
The answer to that question remained unclear Monday after a newly formed group of business leaders argued for a renegotiation of Britain’s membership terms — echoing the policy of Prime Minister David Cameron, who in January promised voters a referendum on whether the country would remain in the Union.
The new group, called Business for Britain, is intended to counter the intervention of pro-E.U. business leaders who have warned of the dangers of Britain slipping out of the 27-nation bloc and its single market of 500 million people. A statement released Monday to announce the group’s formation was signed by about 500 executives.
In the declaration, Business for Britain said Mr. Cameron was “right to seek a new deal for the E.U. and for the United Kingdom’s role in Europe.”
Mr. Cameron has pledged to hold the referendum within five years, if he remains in office after elections scheduled for 2015. But that promise has failed to halt the rise of the U.K. Independence Party, or UKIP, a small but expanding populist group that wants Britain to quit the Union and curb immigration.
So far the opposition Labour Party has resisted calls to commit itself to holding a vote on E.U. membership if it wins power in the next general election, though some analysts believe it may ultimately feel the need to do so.
Never much attracted to the idea of European unity, the British public tends to see the Union in terms of value for money. That means that the verdict of high-profile business leaders is crucial.
In general, big businesses, which depend on international trade, tend to be more pro-European than smaller companies, which are more focused on the domestic market. However, Business for Britain boasts some supporters from larger enterprises, including Karan Bilimoria, founder of Cobra Beer, an international brewing company, and Richard Burrows, chairman of British American Tobacco.
“Far from being a threat to our economic interests, a flexible, competitive Europe, with more powers devolved from Brussels, is essential for growth, jobs and access to markets,” the group said in its statement.
Like Mr. Cameron, Business for Britain has yet to identify what powers London should seek to win back from the Union, though it says it intends to answer that question later this year.
And also like Mr. Cameron, Business for Britain has not said whether it would recommend leaving the Union if negotiations on new membership terms do not lead to significant change.
In January pro-European business leaders including Sir Richard Branson, founder of Virgin Group, and Roger Carr, president of the Confederation of British Industry, a lobbying group, signed a letter that warned against risking Britain’s membership in the European Union.
A group of more skeptical business leaders countered with a letter supporting Mr. Cameron’s approach.
Pro-Europeans were dismissive of the initiative announced Monday.
“Everyone wants reform in Europe but without throwing away the advantages we get from permanent full access to Europe’s single market and maximizing British influence in it,” Peter Mandelson, a former cabinet minister and a former European commissioner, said in a statement.
“This new group of familiar names and small businesses may hinder this process and slide towards UKIP’s rather than David Cameron’s position,” Mr. Mandelson continued. “My fear is that this will not help to advance Mr. Cameron’s cause in Europe.”
Leaders on both sides of the issue argue that the Union needs to reform. Pro-Europeans have begun to rally behind two different campaign groups. One, Business for New Europe, has sought to argue the case that Britain must engage strongly with the European Union in order to bring about any significant reforms. Another organization, called British Influence, describes itself as an independent advocacy campaign that wants Britain to lead in Europe.
Article source: http://www.nytimes.com/2013/04/23/business/global/23iht-pound23.html?partner=rss&emc=rss
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