Thursday 3rd April, 2014

According to a CBI survey, there is a small but growing trend for firms to bring back parts of their business to Europe. The survey suggested that many more would consider doing so if the European Union (EU) become more competitive.

The survey carried out by more than 50 senior business leaders in the UK, Germany, France, Italy and The Netherlands, who together employ over one million workers and generate nearly a trillion pounds in annual revenues, reveals that 60 percent said that EU reform that resulted in better regulation would be the key factor leading to them reshoring parts of their business.

Firms also urged political action to boost labour market flexibility and ensure the boundaries between the European Commission and national parliaments are better respected.

40% of respondents are in favour of reshoring in principle, compared to only 6% against. A third of firms surveyed (32%) have moved some degree of activity back to their home market in the last three years.

However, while 23% of firms say they will probably or definitely reshore in the next three years, 62% say they currently have no plans to. It came as a CBI delegation header to Brussels  to discuss the issue with the UK Prime Minister, ahead of the European Council.

Katja Hall, the CBI chief policy director, said:

"This snapshot survey shows a real appetite across the Continent to reform the EU and bring more jobs back to Europe. Some companies are already making waves on this front, but it’s clear much more must be done by politicians for firms to accelerate the trend for reshoring.