Member Article

Baxter Freight boss urges patience regarding European Union

The results of last month’s European elections sent shockwaves through the political establishment in the UK and across the wider EU. It’s increasingly clear there’s a serious democratic deficit between the ambitions and actions of the Brussels elite and the will of the people in many European nations. For Britain in particular the reality is that “Europe” has changed markedly from the Common Market the UK voted for in the 1970’s. If there is one message that comes from the election results it has to be that people here will need to be given a say on our membership of the EU sooner or later. I don’t think it will be long before all major parties accept this.

I’ve always opposed the idea of a federal European super-state and campaigned against Britain joining the Euro. I also believe the EU is too quick to impose new regulations on business and does not care enough about our competitiveness in a global market place. A degree of immigration is good for business but it seems a bit odd that Britain can’t control migration from the EU at all. I cannot understand why we should have to contribute to infrastructure projects in other EU countries when we can’t afford to mend our own roads.

Having laid bare my considerable euro-skepticism, I’m not in favour of Britain rushing for the exit of the EU just now. It’ s worth remembering that the EU is our biggest trading partner and, for all the spats that have gone on, its members are some of our closest political friends.

Now I absolutely don’t buy into the claim that we will somehow lose 3 million jobs if we leave the EU. We’d only do that if we ceased all exports to Europe but allowed EU members to continue to sell to us. We are a net importer from the rest of the EU so I cannot imagine a scenario whereby trade barriers would be fully re-imposed. But still we shouldn’t forget there is great value in the free trade arrangements we have in a market of 500m people.

More significantly for me, is the fact that the EU is in a state of flux anyway. The reality is that if the Eurozone members want the Euro to work properly they will have to attempt greater integration including debt mutualisation (joint and several liability for members debts). Now whilst I don’t believe such change would receive democratic support or would be sufficient to save the single currency, in the short term it would require a treaty change which Britain would have to approve.

It’s possible that the Eurozone members will baulk at such change. Indeed my view is they should definitely do so. If they do then the Euro will have to be unwound. This would be a perilous and complex process. The formation of a new kind of post federal Europe would require Britain’s support and leadership.

Either way Europe is changing and either way that change will require our support. So even though I’m passionately in favour of a new European settlement or at least a new deal for Britain my view is if we are patient we will be able to drive such change.

I understand the political dimension that has caused the Prime Minister to commit to a referendum in 2017. Of course this may not happen if the Conservatives don’t win a majority next time. But this timetable aside my advice is we play a medium term game and wait for events to unfold.

In the long term our best future is in Europe but for us to stay in Europe has to change. I believe Britain is slowly winning the argument for a Europe of sovereign nation states cooperating together where it’s sensible to do so and building a stronger economy by trading freely. So I say let’s be patient and shape a common future that’s in everyone’s interest. Only if others unreasonably deny us a fair deal should we then look to leave.

About Ian Baxter

Ian Baxter is the former joint owner and Managing Director of RH Freight a £135m European freight specialist that he sold in 2011. He founded Baxter Freight a new logistics provider in January this year. The company currently has 40 staff and is planning to be a£100m turnover business by 2017.

This was posted in Bdaily's Members' News section by Ian Baxter .