CBI warns UK government over Northern Ireland protocol

theguardian.com:

The UK’s foremost business lobby group has warned the government that its threat to override the Northern Ireland protocol is forcing companies to think again about investing in Britain and dragging down the economy.

The Confederation of British Industry (CBI) said immediate talks with the EU, rather than political grandstanding, were needed to resolve the impasse over the protocol, which governs post-Brexit trade between the EU, Northern Ireland and Great Britain.

Boris Johnson’s government is preparing to launch new legislation on Monday that would give ministers power to scrap parts of the protocol, despite intense criticism from businesses and opposition MPs and the threat of retaliation from Brussels.

Tony Danker, the director general of the CBI, said reaching a deal was in the best interests of the British economy as businesses and households struggle with the soaring cost of living and looming risk of recession.

“I don’t think it’s time for grandstanding; I think it’s time to do a deal,” he said. “I’m firmly of the view the Europeans are being inflexible. At the same time, our measures – which may come on Monday – to take unilateral action in response are unhelpful.”

The head of the lobby group, which represents 190,000 companies across the UK, said renewed Brexit uncertainty triggered by the protocol dispute was hurting the British economy. Last week, the Organisation for Economic Co-Operation and Development (OECD) predicted the UK would be the second-worst performing G20 country next year, after Russia.

“We do see global firms shorting on the UK right now,” Danker said. “They look at the UK and think [there is a] combination of a bit of Brexit worry again, some of these figures from the OECD, and we see global