WA27

Business leaders react to EU constitution proposals

A number of the UK's business leaders have expressed their concerns over the possible impact of an EU constitution on Britain's prosperity and democracy.

While the Confederation of British Industry praised the Government for retaining its 'red lines' on tax and employment law in the recent debate on the constitution, it warned that 'the devil is in the detail'.

The Institute of Directors said that the deal did not go far enough.

IoD director general George Cox said, 'we can now expect a vigorous debate in the business community over whether this deal will help business to meet the challenges of the global economy and compete successfully'.

Some small business groups have also warned of possible SME opposition to the constitution.

The Federation of Small Businesses highlighted the low inflation and steady growth currently being enjoyed by the UK.

The FSB's Stephen Alambritis warned that 'many of the 4m small businesses in the UK think there is no need to risk these achievements by joining the euro or signing up for further European integration'.

Meanwhile, David Arculus, chairman of the Better Regulation Task Force, has advised that European policymakers must consider that impact that new EU-wide legislation will have on businesses.

Mr Arculus said, 'I would like to see all European regulations have Regulatory Impact Assessments attached. I would give Europe a score of about one out of 10 in this'.

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