General Election 2015: EU referendum causing business uncertainty, says Grant Thornton

BUSINESSES appear to be more concerned about a British exit from the EU (a so called Brexit) than a Greek one (Grexit), according to research from accountancy and advisory firm Grant Thornton.

Grant Thornton’s research, compiled for its upcoming Future of Europe report, reveal European businesses’ worries about a Brexit have overtaken Grexit concerns.

And the fears of such an exit locally would appear to be just as high.

The Conservative Party has said it will hold a referendum on whether we should leave or stay in the EU before the end of 2017 if it is elected following Thursday’s General Election.

Dave Munton, regional managing partner of Grant Thornton in Birmingham, said: “Relations between Brussels and the UK may not always be comfortable, but there’s absolutely no doubt that Europe’s business community values the UK’s membership extremely highly.

“The General Election in Britain could mark a real crossroads though, as depending on the outcome, it could be seeing an in/out referendum on Europe in its next term.

“From our conversations with dynamic mid-sized businesses throughout the region, we know the uncertainty created by a potential referendum is a real and worrying concern from both a supply chain and customer perspective.

“With opinion polls suggesting a vote to leave is a distinct possibility, and given London’s status as Europe’s financial centre it’s easy to understand why European businesses are worried.
 
“On the other hand, this aversion to a Brexit arguably gives the next British government a strong hand when it comes to seeking reform in Europe – and may test President Juncker’s reported refusal to consider any major EU treaty changes.

“One thing’s for sure; businesses and policymakers across the continent will be watching very closely to see how the dust settles on 8 May.”