Press Release

Small businesses vote for referendum on EU Treaty

9 January 2008

Members of The Federation of Small Businesses (FSB) have overwhelmingly (90%) voted ‘yes’ on whether there should be a referendum on the new EU Reform Treaty in a snap poll held on the organisation’s website.

As Slovenia takes over the six-month rotating Presidency of the EU for the start of 2008, the FSB has raised questions about the possibility of the new EU Treaty affecting UK industrial relations.

The UK has secured a written guarantee that the Charter cannot be used by the European Court of Justice to alter UK employment laws. But there are legal experts who say that this written guarantee may not be effective and that small businesses could face further complexity in employment laws.

John Walker, FSB Policy Chairman, said:

“The new EU Reform Treaty makes the Charter of Fundamental Rights legally binding.

“We are deeply concerned that, despite the written guarantee that the Charter will not apply to employment law in this country, the UK’s position is open to legal challenge and that small businesses could suffer as a result.

“This poll clearly shows that small businesses are worried about the new EU Reform Treaty and believe they should have a say on whether it is implemented. The Government should stick to its promise of holding a referendum on the proposals. The packaging may have changed but the provisions are almost identical.”