CBI accused of scaremongering again on Brexit

The CBI was accused of ‘coordinated scaremongering’ last night after it rounded up business groups from across europe to warn against Brexit.

The heads of 21 business federations on the Continent – led by the slavishly pro-eU CBI – signed a letter calling on the UK to maintain its ties with Brussels. But the move was instantly dismissed by critics who pointed out that the supposedly neutral CBI is funded by the eU and previously campaigned for Britain to join the ill-fated euro.

The letter also threatened to backfire after many of the signatories warned that Brexit would be a disaster for europe rather than Britain. The head of Germany’s business lobby group warned that ‘a divided europe would sink into oblivion’ if Britain left the eU.

eurosceptics seized on the comments as evidence that the eU needs Britain more than Britain needs the eU. Matthew elliott, chief executive of the Vote Leave group leading the campaign for Brexit, accused the CBI of ‘coordinated scaremongering’: ‘The CBI is funded by the eU, so it is no surprise that it wants to campaign for the UK to stay in the eU come what may.’

David Cameron has urged business leaders to speak out in favour of Britain staying in the eU in the hope that it will swing the referendum in his favour.

The CBI released a string of comments gathered from the heads of business lobby groups across europe warning that Brexit would be a disaster for the region.

Markus Kerber, director general of the BDI business group in Germany, said: ‘A Brexit would lead to a dead end. A divided europe will sink into oblivion.’ Michel Guibuad, the director general of France’s MeDeF – the country’s largest employers’ federation – said that: ‘For France and for europeans, a Brexit would be a major step backwards.’

But the warning from the CBI was undermined by a report from the British Chambers of Commerce which said ‘business remains divided on europe’.

Carlos Ghosn, chief executive, of Nissan and Renault brushed off fears of Brexit: ‘I don’t think I’m going to sell more cars because the UK stays in or leaves the eU,’

British business leaders with roots in the Commonwealth said the UK should quit the eU if it cannot bring back powers over immigration and trade.

In a letter to Mr Cameron, they said ties to Brussels harmed British trade with Commonwealth nations such as Pakistan, India, Bangladesh, Australia and New Zealand.