Bill Midgley column

Feb 2 2005 By Bill Midgley, The Journal

We are going to hear a lot about Europe over the next 18 months, even if the Government do what they can to separate European issues from the General Election.

The European Constitution is still to be the subject of a referendum, sometime in 2006, unless it is voted down by other countries in Europe before that, which might well serve the Government's purpose!

However, what has been emerging from Europe over recent weeks is a rather more pragmatic view of the future of the Union.

The Union has to-date seen itself as the basis of a major, if not the major, trading block in the world.

However, a study of just how fast the rest of the world is growing against Europe has perhaps brought about a sharp attack of reality.

Should the economic growth rate in Europe be 0.5pc more per year than the Americans it will take 120 years before Europe catches up with the United States.

As, however, the European growth rate is well behind that of America, by something in the order of 50pc, it is quite evident that many of us shall never see Europe anything like as prosperous as the Americans, and the previous target of equality by 2010 is being quietly slid away.

For too long Europe has passed legislation, and in particular dealt with the business community, in a way which ignores what is happening in the rest of the world.

The social aspirations of Europe may be admirable, but they have to be paid for by a vibrant and dynamic economy.

One difficulty the European business community has in engaging with politicians in the EU is that far too few of them have a business background.

They do not understand how business operates, what it has to do to survive and the mechanics and dynamics of running business organisations.

That is not to say that business is always right and it too must take a wider view and absorb the best of practices from elsewhere.

However, an ability to think as businesses do, and to have some empathy with the problems which they face in world market places should be an essential requirement of all of our would-be politicians, be they national or European.

There can be little doubt that our future is inextricably linked with Europe, even if we are not totally integrated as are some of our Western European neighbours.

Bill Midgley is president of the British Chambers of Commerce.