In its latest report ‘Choosing Our Future’, the lobby group said its members are overwhelmingly in favour of remaining in the EU, while acknowledging that reform is necessary.
The report said that the key advantages of EU membership included a broader market for British businesses. Access to the 500m consumers across Europe was a key support for UK jobs. EU membership also brought more international investment, provided more choice and lower prices for consumers, and gave access to additional skills for business to grow.
Were the UK to leave, the CBI argued that trade terms would deteriorate because tariffs and other barriers would return. Equally, the exact terms would depend on the deal negotiated with the European Union. The EU would be in the driving seat when negotiating given just 11% of their trade is with the UK, whereas the EU is 50% of the UK’s trade
At the same time, CBI members said that some aspects of EU legislation proved a burden to smaller businesses in particular. As such, the group called for reform that ensures the EU works better for business, including steps to open up global markets, reducing and simplifying rules so that firms can grow and ensuring that non-Eurozone countries remain protected from further integration.
John Cridland, CBI director-general, said: “The CBI speaks for 190,000 firms of all sizes, in every sector and in every corner of the UK, and most of our companies want the UK to be in a reformed EU. For business the benefits of full membership outweigh the disadvantages, but the EU must work better.
“The Single Market has been the solid foundation of our economic success in recent decades, giving us direct access to 8 times more consumers than in the UK alone and ensuring we can go toe-to-toe with larger economies on major trade deals, creating jobs and economic growth here in the UK.
“While there are many benefits to EU membership, we should not be blind to the downsides and recognise the EU, like any big institution has its faults and needs to do better…the UK must push for reform to make the whole of the EU more competitive in the global economy and deliver a Single Market fit for the 21st century.”
