The United Kingdom and the EU have to choose prosperity about politics

Unlock Free

Roula Khalaf, publisher of the FT, selects her favorite stories in this weekly newsletter.

The writer is the CEO of the entrepreneurs’ organization

As the spectrum of protectionism launches its shadow over the world economy, now is a time to leave behind the ancient arguments. Instead, we should take action. Currently, leaders are preparing for the EU-UK summit next week. Markus Beyrer, General Director of Businesseurope, and I, strengthened by the strength of companies of 25 million people we speak throughout Europe, ask that they choose prosperity about politics.

This is the first time that the CBI, the leading business voice of the United Kingdom and Businessurope, which represent more than 40 European federations, have joined to publicly expose business priorities for strategic collaboration in the EU-UK refreshed. In a formal letter For the Prime Minister of the United Kingdom, Sir Keir Starmer and President of the European Commission Ursula von der Leyen, we have established the specific steps needed to improve this crucial relationship.

With the war at our door in Europe, a coordinated and collaborative action on defense and industrial capabilities is a priority. However, joining the common threats cannot be the roof of our ambition; The renewal of the economic relationship of the United Kingdom-UE should not be left to “any other business” on the agenda.

Business is not eager to reappear the Brexit referendum or to step on the negotiators of the red lines. Both parties carry luggage on the table. But we cannot afford the legacy of the last decade to determine the future of the next one: this summit must make critical progress.

The EU and the United Kingdom share the North Sea and have aligned their clean zero ambitions. Energy cooperation between them could provide energy security and a resistant, low carbon economy. The EU-UK trade and cooperation agreement pledged to “seriously take into account respective carbon price systems”. But progress has been glacier.

With our emission negotiation schemes that make free bonuses, this is the time to link them, to create a deeper, liquid and effective market. A mutual exemption in our respective carbon border adjustment mechanisms would prevent new commercial barriers that hindered electricity imports and stop joint network projects in the North Sea. Neither the UK’s net energy goal nor the EU’s vital electrification needs cannot be satisfied without it.

Mobility has become an overly politicized topic and risks catching on stagnation. But people traveling through borders are very different from permanent migration if they do to provide services, which represent 48 percent of our total bilateral trade. Everyone wants our power service sector to prosper and grow. This is not a cake, it is pragmatism. Both parties must focus on making it a reality, whether they are improving short-term business trips or through mutual recognition of professional qualifications.

The United Kingdom leaving the EU regulatory regulatory regulations and customs has left companies on both sides of the channel with their own red Brexit tape. For those that affect the highest costs, not moving forward now would be a lost opportunity to create an environment where companies prosper.

Reducing these costs does not require re -entering the customs union. A health and phytosanitary agreement and a veterinary agreement would support agricultural and food products that move less fronts, but without compromising high food safety standards and animal health. This agreement would also facilitate the flow of trade between Britain Continental and Northern Ireland. Recognizing the tests and certification of others would also reduce barriers to goods trade. The EU already has these agreements with the United States, Canada and several countries, why not the United Kingdom?

None of this would violate the political lines in London or Brussels. It is pragmatism to unlock prosperity: the type of leadership and the vision that the companies on both sides of the channel want to see from the summit next week.