How UK renegotiations of EU terms builds economy

If some of the burden can be eased, businesses will be able to help economy recover.

08:44 30 April 2013

Business for Britain has lent its support recently to the prospect of renegotiating the UK’s terms with the EU. They formed the group to counter other business entities that are leery of trying to renegotiate changes in the current arrangement because of a suspected downturn in investments.

 

While it is possible that the use of financial instruments may decline, and investments in general, here are a few ways that this may actually increase the use of financial instruments and investments.

 

• Reduced risk—depending on the new arrangement, the UK may have to shoulder a smaller financial burden. Distributing the responsibility among a wider group will actually result in more financial stability, which looks better for investors, and for the general public who are trying to attend to their financial instruments.

 

• Economic recovery—while trying to negotiate new terms won’t produce a complete economic recovery; it can pave the way for it. If businesses have lower costs and better terms, they would potentially have the ability to pass on the savings to the consumer, which thereby encourages spending, investments, and retention of financial instruments.

 

• Surplus—slight changes in the terms may allow businesses to have more of a surplus that can be used to hire more workers, reduce prices, and perhaps increase wages. If these things are done, many people will also experience a surplus which will then be spent on shopping, financial instruments such as investments. This will bolster the overall economy, which will in turn capture the attention of investors.

 

Much of the outcome will depend upon the actual terms that will be renegotiated, along with immediate effects and how they are handled. If handled appropriately, the effect on the UK could begin to move everyone out of the economic depression, which was announced by the Archbishop earlier in the week.