A moratorium on new employment law is being encouraged by the British Chambers of Commerce (BCC), which has published its latest European manifesto.

Due to the economic downturn, companies need time and space to focus on surviving financial difficulties rather than legislation, it said.

The BCC made its comments ahead of the EU parliamentary elections on June 4th, when business should be “at the very heart” of the agenda, the organisation said.

New laws on employment should only be passed if they create more jobs and make labour markets more flexible, it added.

Director general David Frost also urged candidates to reject protectionism and “tear down the barriers to global trade”.

“Business can help get Europe growing and working again, but it must be backed up by governments and politicians who understand the problems,” the group concluded.

In related news, the BCC commented as the UK’s car scrappage scheme was implemented.

It said the initiative was just the type of thing needed during a recession.