THE new EU Constitution should focus on building enterprise not bureaucratic structures, according the Kent branch of the Institute of Directors (IoD).

Chairman Alyson Howard spoke out in support of a new report, The EU Constitution: Meeting The Economic Challenge, from the IoD which states that the Constitution, as currently drafted, fails to respond to the key challenges that Europe now faces.

These challenges include the rise of powerful new economies such as China and India, technological advance and demographic shifts. Authoritative projections show the combined GDP of Brazil, India, Russia and China rising from 15 per cent of G6 levels today to eclipse the G6 by 2040.

Ms Howard said: “The Government’s referendum commitment has strengthened the Prime Minister’s hand at the negotiating table. The Government should now step up its demands, making it clear that it will not accept the job-destroying Charter of Fundamental Rights and EU-level co-ordination of economic policies.

“Instead, Britain should be arguing for a Constitution that puts deregulation and free trade at the top of the EU’s agenda.”

“The referendum commitment has already brought the prospect of a valuable concession on EU control of energy policy. It is vital that Europe starts responding to the challenges that we now face in the global economy.”