Businesses back Boris’ call for EU renegotiation
Quitting the EU would create hundreds of thousands of jobs in London, compared with staying in an unreformed union, Boris Johnson will say on Wednesday.
A study commissioned by the mayor has found that a reformed EU would be best for the capital.
But failing that success, it would be better for Britain top quit, according to the upcoming study headed by the mayor’s adviser, former city economist Gerard Lyons.
Campaign group Business for Britain welcomed the findings.
“The mayor is absolutely right that we should seek serious reforms of our relationship with the EU, but also that we should not be afraid of the prospect of Britain leaving a stagnant EU,” said the group’s chief executive Matthew Elliott.
“Every British business would benefit from a new deal with the EU, but the City in particular must secure reforms if it is not to be permanently undermined by the collective power of the Eurozone.”
However, Roland Rudd, the boss of rival group Business for New Europe, disagreed with Johnson’s stance.
“Boris commissions a virulent euro sceptic report and guess what? We are better off out unless big reforms,” Rudd tweeted.“Politics triumphs over economics.”
The Prime Minister wants to renegotiate Britain’s relationship with the EU, and hold a referendum in 2017. David Cameron wants to stay in the EU in that referendum.
By contrast, Johnson appears more willing to take a tough stance and threaten to leave should the negotiations not go the UK’s way.
The study has found that a reformed and competitive EU could generate an extra 1m jobs in London over the coming two decades.
If the reforms cannot be achieved, the next best alternative is for the UK to leave, and focus on global trade – which would generate 900,000 jobs.
And the worst solution would be to stay in an unreformed union, generating just 200,000 jobs in London.