Partner Article

Lack of European single market for services is scandalous

The head of a major British business lobby group says Europe has “lost its way,” and is in urgent need of fundamental reform.

Simon Walker, the director general of the Institute of Directors, is due to speak at the organisation’s annual convention, and will highlight recent survey results that suggested just 15% of its members would vote for Britain to exit Europe.

Mr Walker said IoD members wanted “deep reform” and cited home affairs, employment law and corporate governance as areas where powers should be repatriated.

Nearly 80% of the organisation’s members have links with the EU and 60% said continued access to the Single Market was important to the success of their business.

To the idea of a British exit, Mr Walker is expected to say: “Amongst IoD members and across the business community there is very little appetite for such a policy.

“As business leaders I believe we must make the case for a reformed, more equitable relationship - but one that still has Britain at the heart of European influence.

“Reform is possible, if the political will exists. The IoD stands four-square behind the Prime Minister in his bid to renegotiate the terms of UK membership.

“High on the list must be the creation of a genuine single market.

“It’s a scandal that 20 years after it was supposed to be completed, there is nothing close to a single market for services across Europe.

“Whether you’re a carpenter or an insurance broker, the single market does little for you. A recent Europe-wide poll found that these barriers in the service economy mean just 8% of European SMEs engage in cross-border activity.

“Given that 99 per cent of all EU businesses are small to medium-sized enterprises, accounting the vast majority of all European jobs, creating a single market for the services market and for the digital economy must be a priority.”

This was posted in Bdaily's Members' News section by Tom Keighley .