CBI calls for stronger ties with EU

A leading UK business lobbying group, the Confederation of British Industry (CBI), is urging for a reset of relations with the European Union (EU) in a bid to move beyond the divisions created by Brexit. The CBI is calling for practical steps to be taken to ease travel restrictions, cut red tape, and collaborate on issues such as energy, climate, and defense.

The CBI’s report comes ahead of an EU-UK summit scheduled for 19th May in London. The organization argues that the current setup is no longer suitable in a world facing increasing geopolitical threats and economic uncertainty. The EU is the UK’s largest trading partner, and the government has expressed its desire to establish a new post-Brexit deal with the bloc.

The UK government has stated that it will act in the national interest to secure the best outcomes for the UK in discussions with the EU. However, it has emphasized that no final agreement has been reached and that it will not provide a running commentary on the negotiations.

Among the CBI’s recommendations are measures to make it easier for staff to work across borders, restore recognition of professional qualifications, and reintroduce youth mobility schemes to allow young people to live and work in both regions. The government’s objectives include securing a defense deal and renegotiating the trading relationship between the UK and the EU.

A key demand from the EU is the establishment of a youth mobility scheme, which would facilitate young people’s ability to study and work in the UK and vice versa for a limited period. While the UK had previously stated that it had no plans for such a scheme, its opposition has softened in recent weeks.

The CBI argues that youth mobility schemes would expand the talent pool available to businesses in the UK and offer UK citizens the opportunity to access a wider range of employers.

The proposals put forward by the CBI are based on input from over 400 UK companies and are in line with priorities outlined by BusinessEurope, the EU’s business lobby group. Companies such as Airbus, a major UK employer, have expressed support for the call to enhance EU-UK collaboration.

Energy UK, an industry group, highlighted the importance of increased cooperation on climate and energy issues in the relationship between the UK and the EU. The report also raised concerns about the impact of new trade rules and impending carbon taxes in Northern Ireland, which could cost businesses up to £200 million annually.

CBI Director-General Rain Newton-Smith emphasized the need for the UK-EU relationship to evolve to support growth, resilience, and global competitiveness. Business leaders are prepared to engage and contribute to this process of renewal and collaboration.