John Cridland

Business chiefs have warned that company leaders are becoming frustrated with increasing amounts of pan-European social legislation.

The CBI called on Monday for an overhaul of European Union institutions to curb increasing levels of EU regulation in areas such as tax and employment policy.

Publishing its submission to the convention on the future of the European Union, the business group criticised the Commission for introducing new laws even when there was no consensus between social partners.

But business leaders emphasised that their criticism did not indicate hostility to the EU.

"British business is a passionate supporter of the EU. But we need the Convention to help speed up the painfully slow progress on the pro-business single market agenda," said John Cridland, CBI deputy director general

"We need to clarify that action beyond this must be restricted to areas of real consensus."

The CBI's backing for a more restricted role for the Commission conflicts with the call last week by Commission president Romano Prodi for his body to take on more of the powers of an executive.

However, a clearer definition of subsidiarity and possible enforcement mechanisms could emerge from the Convention's deliberations, raising the possibility that there may in future be greater restrictions on Commission interventions in domestic regulation.

Such a move would be welcomed by bosses.

"The Commission remains overly attached to heavy-handed approaches. Too often it has seen voluntary approaches as a first step to regulation rather than initiatives of value in their own right," said Cridland.