CBI chief hits out at Eurosceptics

THE CONFEDERATION of British Industry president yesterday cast aside the Euroscepticism of some of his senior colleagues when he called for Britain to become a key player in shaping the European Union.

In his New Year message, Sir Clive Thompson said that the next 12 months would be make or break for the UK in Europe.

"It is crucial for Britain to play a major role in shaping the final outcome of the EU. Standing on the sidelines, watching others make decisions that affect us, will achieve nothing."

The most important issue is the euro, which is launched tomorrow. "We will soon see if one interest rate does work for 11 countries, as well as the effect of Britain's decision to stay out. Those effects will be keenly felt by the business community. All this should contribute to a more grown-up debate about the single currency," Sir Clive said.

Britain needed to influence decisions over whether Europe would be entrepreneurial with labour market flexibility and high growth, or whether it would settle for low growth, high taxes and regulation, he said.

Britain's absence from the euro would mean a "painful year" for the economy, said John Monks, general secretary of the Trades Union Council.

"It is beginning to seem as if we have repeated the standard British error of coming too late to Europe to secure the best deal possible," he said.