8 out of 10 CBI members would vote to stay in the EU if there was a referendum

The economic turbulence on the Continent has opened a national debate on the EU, with the UK’s membership being seriously in question for the first time since the referendum of 1975. Talk of reform, repatriation, and even retreat are filling column inches and sparking debate in political parties.

For British business, large and small, the response to this is unequivocal: we should remain in a reformed EU. Today, the CBI published our contribution to the debate in a wide-ranging report, ‘Our Global Future: the business vision for a reformed EU’.  The report examines the pros and cons of EU membership and finds that, while there are drawbacks and well-documented frustrations, the benefits significantly outweigh the costs. It is overwhelmingly in our national interest to stay in the EU – but reforms are urgently needed. We want to encourage as much debate as possible within and between the parties to ensure that the conversation we have as a country is based on facts and evidence.

Three-quarters of CBI members – of all sizes and sectors – say that the creation of a Single Market of 500 million consumers has had a positive impact on their business, not to mention the investment this brings from around the world and its contribution to making the UK the world’s leading financial centre. In addition, the EU has signed free trade deals with nearly 50 partners, giving the UK access to £15 trillion-worth of markets, and is now working towards opening up markets which would double that figure. All this has directly boosted the living standards of UK citizens, with our research suggesting that EU membership adds 4-5% to GDP – that means the average person is £1,225 better off each year as a result of being ‘in’. And, as Our Global Future sets out, no alternative option would come close to matching this balance of benefits or offer greater influence for the UK.

But – to state the obvious – the EU is far from perfect, and too often pro-Europeans have turned a blind eye to the faults. Too often EU rules are poorly thought out or involve costs that are disproportionate to the benefits they seek to achieve. For business, this includes the area of social and employment law, where there is often significant disagreement between us and trade unions. But this does not mean business is calling for a repatriation of these laws as the price for the UK remaining in the EU. Reform for the whole of Europe – not on the basis of UK exceptionalism – is the approach we advocate. In addition to burdensome regulation, the EU’s authority seems to be creeping into areas and issues where it has no business being. The EU must refocus on its core task: helping European economies and governments to co-ordinate with each other, where necessary, to boost jobs and growth across the Continent.

To do this, the EU must reform and renew its priorities and purpose to keep pace with increasingly competitive international rivals. It must be outward-looking, signing more trade deals and breaking down trade barriers. It needs to update the Single Market for the 21^st century and change its regulatory approach to drive European competitiveness. It should take the steps needed to save the Eurozone, but must safeguard the Single Market for those outside the Euro at the same time. The EU of tomorrow must continue to work for all its member states, with the right balance of power and division of tasks struck between the Commission, Parliament and all 28 member states.

To achieve this, the British government must reform how it engages with the EU. This means UK MEPs and MPs looking more closely at legislation as it is developed, strengthening links with other member states and working to tackle problems at an EU level. The government must get more Brits into key European institutions to increase our influence in Europe further. Because influence through engagement is what creates the conditions in which business has to operate, however unglamorous the nuts and bolts of policymaking may be.

This reform agenda is achievable and can help put the EU on a path to sustainable growth and global competitiveness. But it is one we must shape from inside the EU. That is why eight out of ten CBI members, large and small, would vote to stay in the EU if there was a referendum – because they believe EU membership must continue to be the cornerstone of our international engagement as we look to realise our global future.

Katja Hall is chief policy director at the CBI. Read the full report here.