REPEAT: MNI: Brexit Links Main EU Business Lobbies On Reform

Repeats Story Initially Transmitted at 11:53 GMT Jan 25/06:53 EST Jan 25

By Silvia Marchetti

     ROME (MNI) - A future post-Brexit era, with the UK likely no longer a

member of the European Union's single market, is pushing Europe's three leading

business lobbies to join forces to strengthen the single market and push through

key EU reforms, officials have told MNI.

     The three lobby groups -- Italy's Confindustria, France's Medef and

Germany's BDI -- are holding a series of bilateral meetings, kicking off with a

2-day meeting in Rome between the Italian and French groups.

     The meeting that starts Thursday is a first between the two and follows on

from a recent bilateral between Confindustria and BDI. The aim is to spearhead

the creation of an avant-garde business front, looking to drive European growth

and pursue change across the bloc.

     "What happened with Brexit has taught us all a lesson. Paradoxically,

Brexit has made us team-up, come together in as a team and pin-down our

priorities," said Paolo Bastianello, a member of Confindustria's European

Policies Committee.

     "France's Medef has drawn closer to us, as has the BDI. Europe's big three

industrial giants understand that if they want to strengthen the single market

with pro-growth policies to support mainly small businesses, they must speak

with one voice and show a common position on the European stage," he said.

     --DIVIDED WE FALL

     Bastianello argued that "unity makes strength" and that Europe's "three

big" business federations must boost cooperation and "be very close" in order to

achieve a reformed European industrial framework.

     "Europe is currently distant from the needs of businesses and we can change

this only we focus on what unites us, avoiding fragmentation. The risk,

otherwise, is that the bloc's economic engine gets weakened and breaks," said

Bastianello.

     This week's Italy-France business forum, expected also to be attended by

the Italian and French economic ministers, Piercarlo Padoan and Bruno Le Maire,

will likely focus on key common challenges  These include the need of a

political and banking union to boost the single market, along with measures

aimed at strengthening the global competitiveness of EU firms.

     "The European Union is facing a debate over its future and what kind of

reforms to implement, but it is paramount to understand that any new governance

of the bloc cannot be separate from reformed, bolstered EU industry," said

Bastianello.

     In his view, Europe is currently over-focused on pro-environmental policies

-- "which is good", he added -- but it must also take into account business

priorities such as the simplification of the single market.

     --AFTER UK EXIT

     Planning for the post-Brexit world will also likely top the summit's

agenda. 

     "Now that the first phase of negotiations are over, we need to speedily

move on to the definition of clear rules with regard to future trade relations

between the UK and the EU. This transition period is crucial," said Bastianello.

     The three big lobby groups share the same view, said another Confindustria

source. Both Confindustria and BDI are in favour of establishing the closest

possible economic relationship between the EU and the United Kingdom, while

Medef wants to salvage the quality and strength of pre-existing economic ties

with London.

     In a recent interview with Market News, Lisa Ferrarini, Confindustria's

Vice President, said that a transition period is necessary for firms to adapt to

the new post-Brexit scene through a clear set regulations which must be defined

quickly.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com