British Business — Euro Champions or Global Players?

Abstract

At the same time as Western European politicians and officials are pulling their countries ever closer together, creating a single government for the larger area, companies in Western Europe are caught up in the rapid progress of globalisation. Some argue that, because business is going to be conducted more and more by multinationals operating on a worldwide basis, there is a need for government at the European level. Such government, they argue, would be big enough to stand up to these large corporations, where a single European country government at the moment is not powerful enough. This may all be wishful thinking. The multinationals are so powerful it may need world action, through the efforts of a range of governments coming together, to defend the customer interest. It also assumes an innocent explanation for greater European government, when the intention may be somewhat different. In Western Europe there is a strong strand of thinking which believes that European government should shield and foster European champion companies. Where they cannot compete worldwide they should be protected. There will be a long and important struggle between the free traders and the protectionists in Europe. We will have to learn all over again the truth that protection leads to higher prices, worse service, less innovation, and eventually to an economy that falls further and further behind.