London: A group of FTSE 100 chairmen surveyed for a poll have overwhelmingly backed renegotiation of Britain’s relationship with the EU, with many calling for economic and social power to be returned to nation states.
The survey, which covered one in three chairmen of the UK’s biggest companies, shows that disenchantment with the EU status quo stretches right to the top of corporate Britain, although support for withdrawal from the bloc remains minimal.
Desire for reform runs deep even though there are divisions about how far it should go. Chairmen want to see changes despite the nervousness many businesses feel about a potential referendum on UK membership.
More than four-fifths (81 per cent) of the FTSE 100 chairmen questioned by Korn Ferry, a leadership and talent consultancy, said they wanted to see Britain renegotiate its relationship with Brussels.
Given a choice between renegotiating, staying in or leaving, only 15 per cent backed staying in no matter what happens, and 4 per cent wanted the UK to go.
Almost two-thirds (63 per cent) said a return of social and economic power to nation states was best for business, with just 15 per cent disagreeing.
Korn Ferry questioned 33 FTSE 100 chairmen whose companies have a combined market capitalisation of £522 billion (Dh3.1 trillion) and nearly 1.2 million employees as part of its Boardroom Pulse survey.
Chairmen were divided about how far reform should go. “Many EU powers should be returned to nation states, consistent with the principles of a single market in goods and services,” said one.
But another warned: “We should stay in the EU and only pursue a few limited reforms that would not require any treaty changes.”
David Cameron, prime minister, has pledged to negotiate reforms and hold an in-out referendum by 2017 if the Conservatives win next year’s general election. Labour and the Liberal Democrats support a referendum only if there is a further shift of powers to Brussels.
The divisions between FTSE chairmen over how ambitious reform should be mirror those between business lobby groups.
Competition regulation
The CBI, Britain’s largest business group, backs reforms such as completing the single market and reducing regulation, while saying Britain should stay inside the bloc and fight for change.
Unlike the CBI, the Institute of Directors, which mostly represents bosses of smaller companies, backs repatriation of powers in areas such as employment law and corporate governance.
A poll last year for Business for Britain, a eurosceptic group, found companies wanted powers returned in nine areas including competition regulation, product and services regulation and environmental rules.
Cameron has yet to spell out exactly what he wants. So far he has urged measures such as curbing access to benefits for migrant workers and a greater role for national parliaments in EU policy making.
“Europe is an emotive issue for UK plc,” said Dominic Schofield, senior client partner with Korn Ferry’s board practice. “Some chairmen believe that Brussels has hindered growth and impaired London’s natural position as a global capital centre, whilst others are less sceptical. Either way, the message that comes through loud and clear is that renegotiation is non-negotiable.”
Carmakers Nissan, Ford and Toyota say they would re-examine their investments in the UK if it quit the EU, while Japan’s Hitachi has said its large investments in the nuclear and rail sector could be in doubt.
