European Union

The EU agenda is one that is ever-present for business whether in terms of regulation, the euro, the Constitution or new opportunities for UK businesses. A substantial amount of regulation emanates from the EU and it is crucial that this does not place unnecessary burdens on business or adversely affect their competitiveness. Since 2000 there have been a number of key initiatives, including the Commission’s better law making programme, which aims to simplify the regulatory environment and the Lisbon Agenda, which focuses on the priorities of growth and employment.

Business Impact
EU regulation costs British business around £0.5 billion per year. There have been a number of controversial directives in recent years, which could potentially damage the UK’s flexible labour market and the competitiveness of UK industry. The Working Time Directive, Temporary Agency Workers Directive, REACH (Registration, Evaluation and Authorisation of Chemicals) Directive and WEEE (Waste Electrical and Electronic Equipment) Directive are just a few of the initiatives that have given cause for concern. There is also concern over the UK’s approach to regulation and the ‘Gold Plating’ of directives in the UK during transposition into UK law. The government’s new guidelines on transposition should go some way to addressing this problem. Membership of the EU, however also affords a number of significant benefits for UK business: Access to a single market of 455 million potential customers; sizeable foreign investment and export opportunities of goods and services currently worth £146 billion.

Chamber Position
Birmingham Chamber monitors EU regulation and campaigns on a range of EU issues, through the Confederation of West Midlands Chambers of Commerce and the British Chambers of Commerce. The Chamber maintains good links with the region’s MEPs to lobby on EU legislation, such as the REACH Directive and most currently the Services Directive, which aims to remove many of the barriers to cross border trade in services, and reduce the red tape that businesses, especially SMEs, encounter when they try to expand into other EU markets.

The Chamber believes competitiveness must be the prime concern for the Commission and regulators should always consider alternatives to regulation.

Birmingham Chamber will continue to campaign on behalf of business for the simplification and regular reviews of EU legislation, to ensure that the benefits outweigh the costs. Regulatory impact assessments are key to more effective policy making, particularly assessing the impact on SMEs and there must be more meticulous mechanisms for addressing this.

If you would like to have your say on problematic EU regulations and their impact on your business, c.ritchie@birminghamchamber.org.uk.

If you would like to be kept up to date or get involved with the Chamber’s lobbying work policyteam@birminghamchamber.org.uk.

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