'Enough EU red tape!' CBI tells Blair

The Confederation of British Industry (CBI) has urged the Prime Minister, Tony Blair, to curb plans for further EU intervention on tax and employment policy.

The CBI says businesses are becoming increasingly frustrated at the 'mounting build-up of social legislation' from Brussels and the lack of progress on free-market reforms.

John Cridland, the CBI Deputy Director-General, said: "It is worrying that since the Lisbon summit, we have seen a raft of inappropriate measures that have damaged British business and damaged the reputation of the EU. Many of the EU's legitimacy problems derive from unnecessary moves to override national preferences.

"The Commission remains overly attached to heavy-handed approaches and too often sees voluntary approaches as a first step to regulation rather than initiatives of value."

The Confederation expressed outrage last month when the European Parliament voted to ignore industry calls to extend the one-day period before agency workers are entitled to employee benefits.

The CBI's plea to the Prime Minister came as it prepares to send a submission to the European Convention, which is currently drafting a constitution for the 15 EU member states and 10 candidate countries.

The submission was positive about the potential scope of opportunity arising from the creation of a single European market, comprising 370 million people.

But it warned further use of the power handed to the EU by member states 'must be built on consensus' after work on the single market is complete.