Business Should Talk To Europe To Cut Red Tape?

It’s the time of the year  when business leaders proclaim yet another ‘Cut Euro Red Tape’ campaign.

Different spokesmen for business queue up to say they want to see less regulation from Europe that they claim is holding back British business.

These are serious men who make serious money. Their view should not be dismissed. As North America and Asia grow strongly Europe does need to ask if every aspect of the way it regulates its economy adds or lessens growth. Europe does have a great number of regulations as do national administrations, professional bodies, regional employer federations and regulatory agencies. But as the more important business leaders troop into Downing Street to tell cabinet ministers what needs to be done they may be making the category error mistake of missionaries throughout the ages – that of preaching to the converted.

Like churches and third world NGOs arguing over the years that the Common Agricultural Policy did damage to third world farmers the UK’s preferred missionary position on EU reform almost always fails to provide satisfaction. The real targets for the CBI, EEF, Marc Bolland of Marks and Spencer, or Simon Walker of the Institute of Directors and other business bosses should be their fellow business leaders in Europe. Telling Iain Duncan Smith or Chris Grayling or Teresa May or the Daily Telegraph and Daily Mail there is something wrong with Europe is preaching to the converted.

Oxfam, Cafod, Save the Children and other excellent campaigners against poverty in developing countries also wasted years of lobbying time telling each other how iniquitous EU trade policies were. They should have caught a flight to Dublin or the Eurostar to Paris to convert the churches and pro-poor lobbies in Ireland or France to call for an end to the CAP. That would have been real missionary work. Similarly, British business needs to find support in German or Dutch or Belgian employers circles for their views. Picking up a megaphone in London and hoping you will be heard in Brussels is a low-return option.

Business leaders also need to ask themselves some tough questions. The most obvious one is to ask why, if EU rules, are so destructive of business do so many competitor firms on the continent thrive on them? If it is EU regulations holding back Britain from competing in the world why are German, or Dutch or Swedish firms operating under the same rules able to export so much more than the UK does?

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