UK business chief urges Yes side to start campaigning

The UK’s top business leader has called on firms to “turn up the volume” in making the case for continued EU membership.

In a speech at the annual dinner of the Confederation of British Industry (CBI) on Wednesday (20 May), the CBI’s president, Mike Rake, urged businesses to make it “crystal clear that membership is in our national interest".

"The question is not whether the UK would survive outside the EU, but whether it would thrive,” he said, adding that “no one has yet set out a credible alternative future.”

Having secured a surprise victory in the UK general election earlier this month, prime minister David Cameron is poised to publish a draft EU referendum bill next Thursday (28 May), the day after he presents his government programme for 2016 in the Queen’s speech.

He’s committed to hold an in/out referendum before the end of 2017, but wants the vote to take place as soon as possible. UK officials are expected to start the negotiating process on EU reforms with EU capitals in the coming months.

Although the CBI has not said what its position would be if Cameron fails to secure the changes he wants to the Britain’s terms of membership, Rake’s speech hints it would back continued membership.

“The current alternatives are not realistic options - little or no influence and the obligation to comply with EU principles whilst still paying most of the costs,” the CBI chief said.

The business community bankrolled the Yes campaign during the UK’s referendum in 1973 on whether to remain in the then European Economic Community (EEC), and is likely to play a pivotal role in the new referendum campaign. Most business leaders favour continued EU membership.

Two London-based lobby groups with business links, British Influence and Business for New Europe, are likely to form the backbone of the Yes camp, while the rival Business for Britain group will be central to the No campaign.

Andy Burnham, the front-runner in the Labour Party’s leadership race, has also called for the EU referendum to take place as soon as possible.

Having opposed a referendum in this month’s UK election, Labour officials believe the vote should be held swiftly in order to reduce investor uncertainty.

Burnham has also urged Cameron to secure reforms on immigration as part of a new EU deal.

Meanwhile, Cameron rejected a proposal by Scottish National party leader Nicola Sturgeon that would require all of the UK’s constituent countries - England, Scotland, Wales, and Northern Ireland - to separately vote to leave the EU in order for a No vote to pass.

“They didn’t give Orkney and Shetland, or the Borders an opt-out,” Cameron said in an interview published on Wednesday (20 May), referring to last September’s vote on Scottish independence.

“This is a UK pledge, it will be delivered for the UK,” he added.

The SNP has hinted it would demand a second referendum on independence from the UK if it decides to leave the EU.

Germany: rather sooner than later

On Wednesday (20 May), Bloomberg reported that the governing coalition in Germany would also prefer to see the UK referendum sooner than later.

"If the situation drags on for too long, uncertainty rises", it quotes centre-left MP Axel Schaefer as saying.

"An early referendum is welcome."