Britain to Urge EU Economic Flexibility

British Chancellor of the Exchequer Gordon Brown said he’s working with business leaders to prod other European nations into more “flexible” economic policies ahead of his decision on whether to adopt the euro.

The Treasury and the Confederation of British Industry, Britain’s biggest business lobby, are working to agree on ways to make the British economy more competitive, Brown said in an interview with the British Broadcasting Corp.

“There are areas where we can work together on investment, on enterprise and improving innovation and skills of the economy and helping to make the economy more flexible,” Brown said.

The comments highlight Brown’s hesitance to join the dozen nations sharing the euro, which he has criticized for failing to overhaul tax and labor laws as economic growth in the region slumped. Gross domestic product in the region may contract this quarter, the European Union has forecast.

The Treasury said it will publish a paper detailing proposed reforms for European Union policies in the coming weeks. The business group will publish its recommendations on the British economy this week.