Reeves seeks to reset the EU to boost economic growth.
Closer ties between the United Kingdom and the European Union (EU) should boost economic growth, Chancellor Rachel Reeves told financial leaders on Monday.
In a UK chancellor’s inaugural speech to the Eurogroup after Brexit, Reeves is expected to argue that a “reset” of relations involves “dismantling trade barriers” and making it easier for businesses to “engage in each other’s markets.” “.
Although Labor has ruled out the prospect of a return to the trading bloc, it has still expressed its desire for the UK to “strengthen its ties” with the EU.
The Conservative Party argued the chancellor should focus on reversing “devastating budget measures which have undermined confidence”.
The British Chambers of Commerce (BCC), which represents around 50,000 businesses, has stressed that for the economy to thrive “we need to increase exports”, but that British businesses “are burdened by significant regulatory and administrative challenges “.
At the Eurogroup finance ministers’ meeting in Brussels, Reeves will make the case for establishing a “mature, business-oriented relationship” between the UK and the EU.
“I know the last few years have been difficult,” she will tell her European counterparts. “Division and chaos defined the last government’s approach to Europe. They will not define ours.”
Reeves will say: “I believe that a closer economic relationship between the UK and the EU is not a zero-sum game. This is about improving our respective growth prospects. »
This speech should not change Labour’s commitment to refrain from re-entering the EU’s single market or customs union. However, it is expected to facilitate a deal on food and agricultural exports, with the UK having expressed its intention to strike a veterinary deal.
Furthermore, it could lead to reduced bureaucratic hurdles for more complex pan-European supply chains in the manufacturing and textile sectors, although significant compromises may be necessary.
The EU wants to establish a program that would allow young Europeans to live and work in both the EU and the UK, a proposal that Sir Keir Starmer has previously rejected.
Furthermore, closer alignment with European food standards could complicate the UK’s efforts to strengthen ties with the US, particularly in light of Donald Trump’s potential return to the White House in January.
“Rebuilding relations with the EU”
Before the chancellor’s speech, shadow business secretary Andrew Griffith asked her to “jump on a plane”. in the United States and talk to [President-elect] Trump to reach a US-UK trade deal, not try to push Britain back into the slow-growing EU. »
Liberal Democrat Treasury spokeswoman Daisy Cooper said the Tories’ botched Brexit deal has been a disaster for the economy, with small businesses, farmers and fishermen all caught up in red tape. endless. »
Recently, in an unexpected development, Andrew Bailey, the governor of the Bank of England, said that the United Kingdom must “rebuild its relationship” with the European Union.
The Governor refrained from making any statements regarding Brexit due to the Bank’s autonomy from the political landscape in Westminster.
“The impact on trade appears to be more on goods than services,” he said. “But it shows why we need to be attentive and welcome opportunities to rebuild relationships while respecting this very important decision by the British people.”
The export of products, particularly in the food and agriculture sectors, has been affected by the introduction of new trade barriers. Conversely, the services sector, particularly banking, exceeded expectations in its performance.
Chancellor Rachel Reeves is championing a “reset” of the UK-EU relationship, with a focus on dismantling trade barriers to promote economic growth. Speaking to the Eurogroup, Reeves is expected to argue for a pragmatic, business-focused partnership aimed at boosting exports and streamlining regulatory challenges.
Underlining Labour’s commitment to a stronger link with the EU without re-entering the single market, it envisages opportunities for mutual growth benefiting both sides. His approach reflects a stark contrast to past government divisions, signaling a cooperative and forward-thinking strategy. By prioritizing trade facilitation and economic alignment, Reeves underlines the UK’s ambition for robust and sustainable growth.
LATEST: Investing Smarter: The Power of Time and Money