Letter to the Editor: The Indispensable EU

From Mr Roland Rudd

The March 27 state of the union column by Graham Watson and Karin Riis-Jorgensen (waking up to Globalisation) was timely and germane. Whether people like it or not, globalisation is the dominant paradigm of our age and action must be taken to meet its challenges. Many of the global issues that arise today, such as counter terrorism, trade and energy policy, cannot be dealt with by national governments in isolation. They require cooperation in international fora, such as the European Union, which can bring national government together to enhance competitiveness, security and stability. In the global age, therefore, the EU has never been more relevant. If it did not exist, we would have to invent it.

A poll that we commissioned shows that business opinion is very supportive of the UK’s membership of the EU, with 78% in favour and 18% against. This is significantly higher that the levels of support in public opinion polls. The EU with its vision of free movement of people, goods, capital and services as set out in the Treaty of Rome (1957), has worked well for business. It has established the single market and promoted economic dynamism. However the EU needs to push on with economic reform (the polls shows that 68% of business leaders supported further economic liberalisation with only 20% against). If it does not, it risks stagnation. If it does, then Europe’s economy can counter the trends in the Eurochambers report, which highlights the gap with the US economy on several economic indicators, and can enter a new age, harnessing its competitive strengths alongside the emerging new economies of Asia and elsewhere.

Roland Rudd,
Chairman,
Business for New Europe,
London EC2P 2YS