CEOs more negative towards EU

Almost half of company bosses have become more negative towards the EU since the start of the economic downturn, according to a new study, although firms remain overwhelmingly in favour of Ireland’s continuing involvement in the eurozone.

The survey of Irish chief executives by employers’ representative body Ibec shows that 88% see Ireland’s continuing membership of the eurozone as being important to the future prosperity of their business, while 73% of respondents said that the Government’s recent ratification of the proposed EU fiscal treaty was an important measure.

“Ireland’s economic links to Europe remain central to our economic recovery,” according to Brendan Butler, Ibec’s director of policy.

“The scale of our trade with the EU is very significant, accounting for 60% of total exports and €100bn in value. As a small open economy that exports over 80% of everything we produce, access to the 500m potential customers in the EU is of major significance to Irish business.

“Despite tough economic times, Irish business remains very supportive of Ireland’s place and role in the eurozone. This view is also reflected in the overwhelming support for ratification of the new fiscal treaty.

Both Ireland and the EU continue to face serious economic challenges, but the view of business is that we need to overcome these challenges together and by agreement,” Mr Butler added.

However, the Ibec survey also showed that as much as 45% of CEOs have “a more negative attitude” towards the EU and its institutions since the start of the economic downturn.

In response, Mr Butler said: “While it is clear that business sees Ireland and Europe’s future prosperity intrinsically linked, the capacity of Europe to deal effectively with the economic crisis has, undoubtedly, been under strain in recent times.

“This has, unsurprisingly, led to some increased negativity towards the EU and its institutions,” he said.

“The fact that the survey was carried out in the middle of great uncertainty about Greece’s future in the euro, and in advance of the recent Greek debt deal may also have had an impact on the figures.

“The EU must now turn its attention to driving growth, both in Ireland and Europe. The announcement, this week, that money from the sale of state assets can be invested back into the economy is a start, but much more needs to be done,” he added.