Financial Times, 18 May 2007

Letter to the Editor: A streamlined EU must keep British labour law flexible

From Guy Dawson and others

Sir, Angela Merkel has already shown her skills as a European leader in reaching an agreement on climate change targets at the European Council in March. Now these skills will be put to an even firmer test with the negotiations over a potential European treaty to replace the constitution.

From a British business point of view, we would like to see an agreement which makes the European Union function more effectively. At the same time, an agreement must be careful not to hamper the role of business. A key concern for British business over the constitution was the charter of fundamental rights, and we echo the point that the charter should not be included in the text of a new treaty.

Many of the human rights covered are already included in the European Convention on the Protection of Human Rights, and there is a danger that the charter would jeopardise the liberal labour markets of the UK and others. There are already widespread protections on social and employment legislation in national law, and we do not see a compelling case for the charter in a new treaty.

The EU is right on its policy of "flexicurity" combining more flexibility in labour markets with the appropriate levels of protection. We need a treaty that eschews the prospect of compromising our flexible labour markets, but also makes the EU more efficient, streamlined and accountable.

Guy Dawson, Founding Partner, Tricorn Partners,
Sir John Parker, Chairman,National Grid,
Roland Rudd, Senior Partner, Finsbury,
Bryan Sanderson, Chair,Asia Task Force,
Bill Thomas, President, Europe, Middle East Africa, EDS,
Lord Christopher Tugendhat, Chairman, European Advisory Board, Lehman Brothers,
Richard Cousins, CEO, Compass

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