Chancellor Rachel Reeves has indicated the current government views closer alignment with the European Union as a key economic priority, stating it’s a “political argument we can win.”
Reeves Prioritizes EU Trade
Following suggestions from other cabinet ministers regarding the potential benefits of rejoining the customs union, Ms. Reeves affirmed her and Sir Keir Starmer’s commitment to “strive and remove barriers for businesses.”
While highlighting recent trade agreements with India and the US, the Chancellor declared, “The biggest prize is clearly with the EU and we have made progress there.” She added, “I’m all up for doing deals with India and the US and Korea, but none of them are going to be as massive as what we can get through better trade relations with Europe.”
Ms. Reeves emphasized the significance of the EU as a trading partner, noting that the UK trades “almost as much with the EU as the whole of the rest of the world combined.” She believes “further integration will require further alignment” and stated her government, under Sir Keir Starmer, is prepared to pursue this.
The Chancellor’s statements come amidst debate over the UK’s relationship with the EU following Brexit. Shadow Chancellor Sir Mel Stride suggested that Labour’s “poor choices,” rather than Brexit itself, were responsible for economic challenges.
Despite these comments, the Prime Minister and Chancellor have repeatedly stated the government will not rejoin the EU customs union or single market. However, Ms. Reeves pointed to the UK returning to the Erasmus student exchange programme and perform on an “ambitious Youth Mobility Scheme” as evidence of progress in improving relations.
Frequently Asked Questions
What did Rachel Reeves say about trade with the EU?
Rachel Reeves stated that the EU represents the “biggest prize” for the UK in terms of trade, and that the UK trades almost as much with the EU as it does with the rest of the world combined.
What is the government’s position on rejoining the customs union?
The Prime Minister and Chancellor have repeatedly said the government will not rejoin the customs union or single market, despite Ms. Reeves’ comments about seeking closer alignment with the EU.
What progress has the UK made in its relationship with the EU?
Ms. Reeves cited the UK’s return to the Erasmus student exchange programme and the development of a Youth Mobility Scheme as examples of progress being made in improving relations with the EU.
As the government navigates its post-Brexit relationship with Europe, what balance will it strike between pursuing closer economic ties and adhering to its stated policy positions?
