Three major EU capitals have pleaded with Brussels to stop strangling their economies with ‘red tape’, piling pressure on Andy Burnham to abandon ‘insane’ plans to unpick Brexit.
The premiers of Germany, Italy and Belgium wrote to Eurocrats asking for an ‘emergency brake’ on Brussels regulations to protect their businesses and boost growth.
The intervention, extraordinary given Germany and Italy are major powerbrokers and the bloc’s biggest and third-largest economies respectively, will send alarm bells ringing in Brussels as it grapples with sluggish growth across the bloc and a rising tide of euro-scepticism.
There are also fears of a Greek-style Eurozone crisis sparked by France, which now has a staggering debt-to-GDP ratio of nearly 120 per cent.
When Greece sparked the Eurozone crisis in 2009, its debt-to-GDP ratio was around 127 per cent.
It comes after Prime Minister Andy Burnham re-opened the Brexit debate by saying Britain should shackle itself more closely to the EU and even consider rejoining, insisting it would be good for the economy.
This is despite the UK economy being the fastest growing (1.4 per cent) among European G7 countries last year.
Prime Minister Andy Burnham has re-opened the Brexit debate by saying Britain should shackle itself more closely to the EU and even consider rejoining, insisting it would be good for the economy
German Chancellor Friedrich Merz was among the three leaders who called for less 'red tape' from Brussels and an 'emergency handbrake' for EU capitals to block it
Italian premier Giorgia Meloni also signed the letter to Eurocrats calling for less 'red tape' from Brussels and an 'emergency handbrake' for EU capitals to block it
By contrast, France’s economy – the bloc’s second-largest – grew by 0.8 per cent. Meanwhile, Germany’s grew by a paltry 0.2 per cent and Italy’s by 0.5 per cent.
Brexiteers today said the letter from EU capitals was proof that closer ties or rejoining would be disastrous for thousands of businesses, warning it would smother them in an avalanche of Brussels red tape.
Reform UK’s deputy leader Richard Tice said: ‘This is a truly damning verdict on an organisation Labour is desperate to tie us back to.
‘Why handcuff ourselves to a failing bloc? Reform UK will tear up all remaining EU red tape, back British business and make this country the best place in the world to invest.’
John Longworth, Chairman of the Independent Business Network (IBN) of family-run firms, said: ‘Who would want to join a technocrat dictatorship when its major member states now recognise that a significant factor in their decline and underperformance is the stultifying effect of the very thing PM Burnham wants to be a part of? It’s insanity.’
In their letter to EU Council chief António Costa, German Chancellor Friedrich Merz, Italian premier Giorgia Meloni and Belgian Prime Minister Bart De Wever said they wanted new powers to block legislation from Brussels.
They said this was needed ‘first and foremost’ to protect their small and medium-sized businesses, which they warned were most hit by a surge of growth-destroying single market edicts passed in Brussels.
‘We call for further ambitious simplification packages to decisively advance the cutting of red tape in the European Union,’ they wrote.
They said this should include EU capitals being handed an ‘emergency brake’ to block onerous regulations, adding: ‘More broadly…our common objective should be to prevent unnecessary regulatory burdens and related costs from causing permanent losses of European industrial capacity and further weakening investment and competitiveness.’
In their letter to EU Council chief António Costa (pictured), the German, Italian and Belgian leaders warned Brussels 'red tape' was strangling their economies
Experts say the volume of EU regulations passed in Brussels has rocketed four-fold since 2010, particularly hitting the bloc’s industrial sector
Experts say the volume of EU regulations passed in Brussels has rocketed four-fold since 2010, particularly hitting the bloc’s industrial sector.
The letter was sent on the eve of a summit of EU leaders getting underway on Thursday, suggesting the three leaders want to give Brussels a shot across the bow.
Mr Burnham sparked a furious row on Monday after claiming Russian interference has influenced the historic 2016 referendum result – a claim branded ‘lies’ by Reform UK leader Nigel Farage and former Tory premier Boris Johnson.
The PM later admitted he had no evidence in a humiliating climbdown.
But he has vowed to press ahead with unpicking Brexit, claiming it would be a 'dereliction of duty' to ignore the chance for a closer relationship with Brussels.
In the Commons on Monday, he said sticking with the status quo was 'not good enough for Britain' as he also opened the door to a return to free movement with the EU after the next election.
He insisted the public mood on Brexit had changed since 2016 and that the 'British people will be the boss of whatever is decided'.
Mr Burnham said he would use a summit with the EU in Brussels on November 20 to discuss options for a closer relationship with Europe and has previously said this could include going 'all the way' and rejoining as a fully paid-up member again.
The summit could lead to new deals which would see Britain join the bloc’s rulebook on food standards. There could also be deals on greater freedom of movement for young adults.
Shanker Singham, a former adviser to ex-international trade secretary Sir Liam Fox, said rejoining would particularly hit Britain’s powerhouse financial services sector in the City.
‘The City has already moved on and does not want to be under EU regulation because of its cost,’ he said.