ADAM SMITH AND THE WEALTH OF EUROPE
Wednesday 11 December 2002
Letter published in the Financial Times from Timothy Kirkhope MEP
Sir, As the Conservative Party's representative on the European Convention, I welcome the Confederation of British Industry's position paper on the future of Europe ("Europe has failed to reduce red tape, says CBI", December 9).
The CBI wants a greater emphasis on building competitiveness, wealth and prosperity; it wants qualified majority voting to be reserved to single market issues; and it opposes tax harmonisation and the incorporation of the Charter of Fundamental Rights into European law. This view is our view on the Convention.
When economic governance was debated, I reminded Convention members that Adam Smith had proved economic freedom went hand in hand with public prosperity. The lesson we should draw from The Wealth of Nations is that a low-tax, lightly regulated economy helps rich and poor alike by inducing entrepreneurship, creating jobs and generating wealth. This lesson is guiding me with my work on the Convention.
First, since the European Union started out as a trading bloc, we should continue to push for more free trade, particularly with the North American Free Trade Agreement. Second, insofar as the Single Market promotes free trade, it is to be welcomed; but the imposition of unnecessary regulations must be guarded against. Third, the gold-plating of European legislation by national governments must be tackled, with the introduction of joint committees of MPs and MEPs to oversee the transposition of EU legislation into national law.
As the great French economist FrÈdÈric Bastiat reminds us: "By virtue of exchange, one man's prosperity is beneficial to all others." The CBI understands this, I understand this and I hope my fellow Convention members take it on board.
Timothy Kirkhope, Conservative Group, European Parliament, 1047 Brussels, Belgium
