British exit seen as opportunity by business sector

David Cameron’s demand for an EU with trade at its core was swiftly followed by reactions that saw Britain leaving the EU as offering more business opportunities for the rest, including Ireland.

The IDA said it would leave Ireland as the only English-speaking economy in the EU, which would prove attractive to many investors, while the French foreign minister said they would “roll out the red carpet” for those wishing to relocate from Britain.

However, the employers body Ibec warned of massive economic implications for the country if Britain’s relationship with the EU changed, and IDA said the UK freed from EU rules could be “more flexible” to investors.

While many of the bloc’s major politicians rejected Mr Cameron’s demand for a fundamental redrawing of the EU, others tried not to erect barricades just yet.

Germany’s Angela Merkel, who has been very conciliatory towards the Tory leader during negotiations on banking union and the EU’s trillion-euro budget, said she was ready to engage intensively with him over his demands.

In many ways, Mr Cameron’s demand for reforms and changes to the EU Treaty coincides with Ms Merkel’s wishes to better delineate powers between the EU and member states in a federal structure.

Any changes had to be fair, she said in response to Mr Cameron’s demand for flexibility in what member states would sign up to, and that would see areas such as environment and social policy return to member states.

Others rejected what they called Mr Cameron’s “á la carte” vision for the future of the EU, with the Swedish foreign minister, Carl Bildt, saying it would result in 28 different policies and no Europe — “just a mess”.

France, however, took the battle to Britain with its foreign minister, Laurent Fabius, saying he offered to “roll out the red carpet” for British businesses to move to his country if the UK left the EU — a riposte to a similar offer by Mr Cameron to French industry when they were threatened with higher taxes.

But with 20% of all foreign companies moving into the EU, setting up in Britain, Mr Cameron noted that EU membership was vital for Britain, clearly hinting that an “out” vote in his referendum promised for four years’ time if he is re-elected would be bad for business.

Mr Cameron’s vision of the EU as solely a common market was rejected by Fianna Fáil leader Micheál Martin, who said it would dismantle those parts of the EU that had been greatest benefit to citizens and member states, and would be a major setback for Ireland.

“The Cameron vision of a Europe, where countries compete against each other by reducing basic employment protections, by ending regional support and by engaging in a race to the bottom, is one Ireland must speak out against,” said Mr Martin.

Guy Verhofstadt, leader of the Liberal group in the European Parliament, of which Mr Cameron’s coalition partner, Nick Clegg, is a member, said the one positive effect of the speech “is the genuine debate that is finally taking place about the EU and Britain’s place in it”.

The leader of Ukip, the British eurosceptic party in the European Parliament, Nigel Farage, rejected Mr Cameron’s call to remain in the EU with a new relationship because of the importance of the single market. “We will campaign for a trade deal with Europe — but we do not want membership,” he said.