Posts Tagged ‘foreign investment’

Shunning the EU will damage the prospects for foreign investment in Britain

29/05/2014, 06:39:48 PM

by Callum Anderson

With the dust just beginning to settle on the European election, it has become clear that only Labour can effectively present the case for the UKs EU membership in the run up to the 2015 General Election and beyond.

For those of us, who believe that Britain can only be prosperous by engaging with our EU partners and not isolating ourselves, this only highlights what we have known for months. That is, those of us who are in the incamp – regardless of party affiliation, must begin to illustrate the benefits of Britains EU  membership.

As you may have noticed, I have tried to do my part, and, this time round, lets look at foreign investment.

In 2011, the UK had the second largest stock of inward foreign direct investment (FDI) – attracting $1.2 trillion of investment – in the world, behind only the United States, was recognised the most attractive location for investment in the EU in the 2013 Ernst and Young European Attractiveness Survey. For example, the UK has been successful in attracting Chinese investment; from the EU27, only France attracted more Chinese FDI between 2003 and 2011.

Whats more, over 1,500 investment projects were set up by foreign businesses in Britain during 2012, creating and protecting 170,000 jobs. Investors from America, France, Germany and India saw Britain as a stable and exciting place to invest. For instance, the Tata Group, which owns Jaguar Land Rover, created thousands of jobs in Britain last year, whilst a Malaysia-led consortium led the £8 billion redevelopment of Battersea Power Station, which is expected to provide 20,000 construction jobs and 13,000 permanent jobs.

Similarly, the UKhas been the second most attractive place in the world (behind the United States for FDI in the aerospace sector, with EADS, Bombardier and General Electric heavily investing in Britain, as well as Europes top location for investment in pharmaceutical and biotechnology research and development (R&D), which is the largest contributor to R&D in both the UK1000 and the G1000 in 2008.

So, how would a so-called Brexitaffect investment from our European neighbours. Would it, as many Eurosceptics claim, change nothing? After all, Britain has so many other advantages, both economic and social, that it wouldnt be in the interest of no one to cease investing in the UK. Its difficult

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