‘Reform EU to help reshore jobs’ – CBI
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A snapshot CBI survey shows that there is a small, but growing trend for firms to bring back parts of their business to Europe. However, the CBI said many more would consider doing so if the European Union (EU) reformed to become more competitive.
Almost two thirds (60%) of respondents to the survey (more than 50 senior business leaders in the UK, Germany, France, Italy and The Netherlands, who together employ over one million workers and generate nearly a trillion pounds in annual revenues) said that EU reform that resulted in better regulation would be the key factor leading to them reshoring parts of their business.
Firms also urged political action to boost labour market flexibility and ensure the boundaries between the European Commission and national parliaments are better respected.
The research carried out by global research agency Millward Brown involved in-depth one-to-one interviews with CEOs, chief finance officers and other senior figures from the world of business. It found that while some progress is being made to reshore jobs back to Europe, there is much more that can be done to accelerate the trend.
Two fifths (40%) of respondents are in favour of reshoring in principle, compared with only 6% against. A third of firms surveyed (32%) have moved some degree of activity back to their home market in the last three years.
However, while 23% of firms say they will probably or definitely reshore in the next three years, 62% say they currently have no plans to. It came as a CBI delegation header to Brussels to discuss the issue with the UK Prime Minister, ahead of the European Council.
CBI chief policy director Katja Hall said: "This snapshot survey shows a real appetite across the Continent to reform the EU and bring more jobs back to Europe. Some companies are already making waves on this front, but it's clear much more must be done by politicians for firms to accelerate the trend for reshoring.
"European businesses want a Single Market fit for the 21st century, better regulation and a Commission that respects national boundaries, to help reel in some of the jobs that have been lost overseas."
