Osborne talks tough on Europe and Russia
CHANCELLOR George Osborne says the EU is in danger of “pricing itself out of the world market” and says he understands growing British frustration with Europe.
Speaking to around 20 business leaders at an event organised by UK Trade and Investment in Peover in his Cheshire constituency, Mr Osborne said he was still in favour of being a part of Europe, but change needs to happen.
With UKIP gaining its first MP last week and its popularity in the polls growing, Mr Osborne and other senior Conservatives are under pressure to take a tougher stance on the EU.
He said: “We want and need change, things happen too slowly, Europe is not working for many businesses. I don’t think we can be immune to growing British frustration with our membership. People increasingly come up to me and say ‘What’s in it for us?”.
“If Europe wants to price itself out of the market, Britain doesn’t have to be a part of that.”
He said the referendum on EU membership, which the Tories have pledged to hold if they win next year’s general election, would like the recent Scottish referendum would “force people to think hard and show their hand”.
Responding to a question from Manchester businessman Iqbal Ahmed about the impact of the economic sanctions on Russia on his seafood export company, Mr Osborne said he could see the dispute over Russia’s actions in the Ukraine “lasting for some time.”
“No one knows how long this Ukraine situation is going to go on, but I think the sanctions have to be a price worth paying as we can’t have a world where a country’s boundaries are threatened as they have been. Russia can’t be allowed to think it can get away with it.
“We have tried to target financial institutions and the Russian regime, but they are not a passive regime and have retaliated.”
The Chancellor said the Government was still fully committed to growing UK exports, both in Europe and in to new high growth markets.
“At a time when I have had to cut other budgets, UKTI’s has doubled, and this is because we want to see more businesses selling to the world. Unfortunately, compared to countries like Germany and The Netherlands we are behinds in terms of our exporter numbers, particularly small and medium-sized businesses.”
“We’ve transformed UKTI over the last three years and it’s sharper, more focused and more commercial.”
He said too the Government has committed more resources to UK Export Finance in a bid to de-risk the process for SMEs, but this Direct Lending facility, which is available to exporters’ overseas customers was being “under-utilised.”
He said businesses encountering specific problems in a given county should contact the British Embassy there, who would raise it with the relevant authorities there. He also pledged the Government would help “where it can” to get export deals over the line if businesses inform UKTI and the Department for Business ahead of ministerial visits.
