The Confederation of British Industry (CBI) has said direct talks with the EU are needed, rather than political approval, to resolve the post-Brexit stalemate in trade between the EU, Northern Ireland and the United Kingdom. The government of Boris Johnson is preparing to launch new legislation on Monday that will give ministers the power to repeal parts of the protocol, despite strong criticism from businesses and opposition lawmakers and the threat of retaliation from Brussels. Tony Danker, the CBI’s chief executive, said the deal was in the best interest of the British economy as businesses and households struggled with rising costs and the risk of recession. “I do not think it’s time for excellence. “I think it’s time to make a deal,” he said. “I am convinced that Europeans are rigid. At the same time, our measures – which may come on Monday – to take unilateral action in response do not help. “ The head of the lobby group, which represents 190,000 companies across the UK, said renewed uncertainty about Brexit sparked by the protocol dispute was hurting the British economy. Last week, the Organization for Economic Co-operation and Development (OECD) predicted that the United Kingdom would be the second country with the worst performance in the G20 next year, after Russia. “We are seeing global companies making short circuits in the UK right now,” Danker said. “They look at the United Kingdom and they think [there is a] A little bit of Brexit worries again, some of these figures from the OECD, and we see global companies thinking, “Maybe the UK is not investing right now.” However, Danker said he believed there was a “very stable landing zone” for a deal that would satisfy the UK, the EU and businesses in Northern Ireland. A spokesman for the UK government said: “The protocol is undermining Belfast. [Good Friday] agreement and distribution of power. “Our legislation will correct the problems. We have always preferred to resolve this through talks, but so far the EU has not been prepared to change the protocol, which is necessary to provide the solutions needed for Northern Ireland. “Our focus has been and will continue to be on maintaining peace and stability in Northern Ireland.” The CBI also issued a sharp decline in growth for the UK economy in its latest economic forecast, following a difficult week for Johnson’s personal power, in which he faced a no-confidence vote by more than 40% of his MPs. Reflecting a severe blow to household incomes from the squeezing of living costs, the lobby group predicted that the UK’s GDP would grow by 3.7% this year, from a previous estimate of 5.1% and just 1% in 2023, revised from 3% before. With inflation hitting the highest levels since the early 1980s, airports struggling to cope, national rail strikes on the horizon and Groundhog Day battles with the EU over protocol, the CBI has warned that there is a real risk of the economy coming to a “distant second”. in politics this summer. “ As the Tories’ rival factions push for a resumption of the government’s economic agenda with their own preferred policies, Dunker said ministers needed to step up their commitment to Britain’s economic challenges. “The economic ideas we need to discuss should be about what will boost business confidence and investment. “They have nothing to do with what is more conservative,” he said. With less than 40 days until parliament to take the summer recess, the CBI said there was an urgent need for the government to announce measures to support companies with rising costs, staff shortages and supply chain congestion. Rain Newton-Smith, chief economist at the CBI, said the war in Ukraine, Covid, continuing supply chain pressures and Brexit “proved to be a toxic recipe for UK growth”. Despite rising exports to other advanced economies, the CBI expects a weak recovery in world trade in Britain, with UK exports remaining 10% below pre-Covid levels by the end of 2023. “Against the background of rising business costs and ongoing pressures on the supply chain, easing trade flows is in everyone’s interest. “It’s not just about reducing non-tariff barriers to trade in Europe and signing free trade agreements,” he said. “Post-Brexit regulatory reforms to support growth, innovation and sustainability can create competitiveness. “But the deviation for its sake could cause further bureaucracy and friction that undermines this mission.”
