Everyone can see the benefits of the EU and everyone can see its shortfalls. Our resident small businessman Peter Zaborszky attempts to cut through the confusion of the in-out debate.
Everyone can see the benefits of the EU and everyone can see its shortfalls. Our resident small businessman Peter Zaborszky attempts to cut through the confusion of the in-out debate.
Does your business trade with Europe? Do any of your suppliers trade with Europe? Does your supermarket of choice trade with Europe? Even if you don’t export or import, you are not immune to the fallout from the impending EU referendum.
And you’re certainly not immune to the uncertainty that the next few months of debate is going to bring to our economy. Markets hate uncertainty – unlike risk, it’s unquantifiable – and it’s not healthy for economies.
So we’re all in this together, whether we like it or not. And that’s always been the case, since Britain acceded to the Common Market in 1973 and, in many ways, since the signing of the Treaty of Rome in 1957 (you don’t have to be in an organisation for it to affect you: ask anyone who has experience of protection rackets).
"Germany needs Britain to stay in the EU, for both political and economic reasons"
The thing is, for a business owner, the EU is not a Yes/No issue. It makes sense as a trading bloc, even if it is far, far from perfect, and sometimes seems more intent on strangling businesses with regulation rather than making free trade more straightforward. But, as a political entity, the EU project is permanently limping.
An 'in or out' referendum does not allow voters to differentiate between the political and the economic spheres; it doesn’t allow them to say they want to stay in but only if changes are made.
We’re being caught in that classic democratic trap, being presented with black-and-white solutions to a problem painted in so many shades of grey.
Given that, what’s a business owner to do? Well, if you’re planning on voting No then it’s simply a matter of crossing your fingers that your business, or supply chain, doesn’t find itself on the wrong side of some new trade barriers thrown up on the other side of the Channel for political gain.
But if you are planning on voting Yes, or are undecided, then time is already running out. Start campaigning now – right now – to ensure change is achieved through European reform.
Write to your MP, engage with organisations such as the British Chambers of Commerce via your local Accredited Chamber, show that you give a damn.
Plenty of you will have concerns about how leaving the EU could affect export markets, foreign investment and key relationships with potential European clients that all enable growth; about how it could make doing cross-Channel business more expensive and time consuming, for both British and European firms.
But you’ll also have concerns about how effective the EU is, about the problems it causes small businesses. Well, as the referendum means Britain will be listened to rather more intently for the next few months, we may never have a better chance to encourage change in Europe and get our answers.
On May 29th, Prime Minister David Cameron met his German counterpart Angela Merkel as part of a whistlestop European tour to drum up support for EU reform; encouragingly, Ms Merkel said she would be a ‘constructive partner’ as Britain sought changes.
But at least as significant was the reaction from business leaders in Germany – our counterparts in Europe’s strongest economy.
Volker Treier, of the German Chambers of Industry and Commerce, was reported as saying his organisation was ‘astonished’ that the referendum was going ahead. He sounded a little frustrated that Ms Merkel had appeared so accommodating to UK requests.
However, in Germany, the prevailing view is that Germany needs Britain to stay in the EU, for both political and economic reasons, and that suggests that Germany could be a mighty ally when it comes to pushing for change.
And if the Germans are prepared to engage with a change process, what excuse do we have for not pushing for improvements, and pushing now?
Remember, change needs to be happening by the time of Britain’s referendum, or it may be too late. And it will also give ‘Yes’ voters a clearer idea just what it is they are voting for.
The months ahead are going to be fascinating and, for small businesses, they could be tricky too as our economy reacts to the inevitable ebbs and flows of the European debate.
As business people, we owe it to ourselves to stay focussed on running our firms in potentially difficult times – and also finding the energy to make sure Europe’s business environment is a good place in which to thrive in the years ahead. Because Europe’s still going to be there, however we vote.
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