Chancellor Rachel Reeves will seek to “reset” Britain’s economic relationship with the European Union, saying closer ties will help break down trade barriers and boost growth opportunities for both sides.
In the British chancellor’s first speech to the Eurogroup since Brexit, Reeves will say that while the UK does not want to rejoin the trading bloc, building a “mature, business-like relationship” is in Britain’s common interest. and the EU.
Admitting that recent years have been hectic, Reeves will tell European finance ministers in Brussels: “Separation and turmoil defined the last government’s view of Europe.” It won’t explain ours.” Although Labor has promised to respect the UK’s decision to leave the single market and customs union, the chancellor’s appeal points to reducing the paperwork burden, lowering export barriers, and seeking a vet deal to ease food and farm trade.
The push comes as British traders grapple with post-Brexit red tape, and as global trade risks increase following President-elect Donald Trump’s threats to raise tariffs to 20 percent on imported goods. The British Chambers of Commerce echoed Reeves’ view, warning that, to grow, the UK “needs to export more” but that firms are “struggling under huge regulatory and paperwork burdens.”
Yet any alignment with EU standards could face political backlash, with Conservatives criticizing Reeves for focusing on Europe instead of prioritizing a transatlantic trade deal with incoming US administrations. Meanwhile, the EU is likely to seek its approval, such as improved opportunities for young Europeans to live and work in Britain—an arrangement Labor leader Sir Keir Starmer has ruled out in the past.
Reeves’ intervention is accompanied by recent comments from Andrew Bailey, the Governor of the Bank of England, who said that Britain should seize “opportunities to renew relations” with the EU, with analysts warning that any US flexibility in protection could be a major threat to European traders. . Carsten Brzeski, global head of ING Research, noted that possible US tariffs and deregulation could “stomp” Europe’s growth potential, making constructive UK-EU engagement more important than ever.
By promising to work constructively with the European bloc, Reeves aims to reassure investors and businesses that Britain’s economic future will not be defined by divisive negotiations or entrenched isolation. Instead, he aims to show that cooperation, rather than conflict, can strengthen Britain’s standing and resilience amid uncertain global trade conditions.
