CBI demands action on leaky EU treaty

Monday, 1 December 2003 5:12 AM

Employers' body, the Confederation of British Industry (CBI), last night called on the Government to shore up the draft European Constitution to better protect Britain's North Sea oil and gas interests and save the UK from damaging business regulations.

The CBI said the treaty would pave the way for a one-size-fits-all financial regulatory framework across the EU; a move that would undermine London's dominance in the financial services industry.

EU foreign ministers began talks on Friday in Naples on the fine detail of the draft, ahead of next month's summit in Brussels, where the new constitution will be finalised.

The CBI told the Government that the draft remained ambiguous and would stifle UK business. The CBI cited a clause that would allow the EU to "pool energy resources" in an energy crisis.

Digby Jones, CBI director-general, said: "We fully support the drive for an efficient EU but not at any price.

"The draft constitution includes serious threats to British business, hidden in a fog of bureaucratic language that leaves so many questions hanging in the air. It is imperative that the text is unambiguous and watertight."

John Cridland, CBI deputy director-general, said: "All this is about risk. They are not some evil people who want to steal our oil and gas. But there is significant concern from the energy industry that it could lead to that result."

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