Following Labour’s ascension to Government there has been a conscious effort to reset the relationship between the EU and the UK. From Starmer meeting von der Leyen, Lammy attending the EU Foreign Affairs Council and Reeves meeting the Eurogroup finance ministers, what progress has been made? And what more can we expect in 2025?
This week marks five years since Boris Johnson won the 2019 General Election, promising to “Get Brexit done”. Five years of an increasingly fractious relationship with the European Union under the governments of Johnson, Truss and Sunak – until Labour came to power this summer, promising a ‘relationship reset’.
What was promised in Labour’s manifesto?
Labour’s manifesto promised to ‘reset the relationship (with the EU) and seek to deepen ties with our European friends, neighbours and allies’, but also committed to not returning to the single market, customs union or freedom of movement. In sharp contrast to the previous government’s messaging, Labour have been open and consistent in their desire for building ties rather than burning bridges with their EU counterparts.
Labour’s manifesto also laid out three areas they planned to negotiate with the EU:
- A veterinary agreement that would align the UK with EU animal and plant health rules to reduce trade barriers
- To aid performing artists abroad with a Visa Waiver for Touring Artists
- Mutual recognition of professional qualifications
What has been negotiated so far?
Sandro Gozi, the newly elected head of the European Parliament’s delegation to the UK, said that “it is the UK government who has to spell out what they mean with resetting” – but so far there has been little announced publicly in the way of concrete negotiations. In October, Keir Starmer appeared to reject proposals for a youth mobility scheme, though there is hope that an agreement could be reached next year as it is regarded as critical for the EU. German MEP and ally of EU President Ursula von der Leyen, David McAlister, highlighted the importance of the issue for the EU saying “the UK Government will have to be judged on its willingness to compromise on this issue with regard to other areas of negotiation”.
Domestically, there has been movement towards a closer relationship with the EU through the Product Regulation and Metrology Bill, which is currently at the Committee Stage in the House of Lords. The Bill, positioned as legislation to update product safety law, also empowers the Secretary of State to make regulations correspond to relevant EU legislation, reducing or mitigating the environmental impact of products – and, crucially, aligning standards, which would make trading products easier. If the Bill passes through both chambers next year then this legislation would offer a valuable tool for the UK government to reduce the regulatory trade barriers stymieing British business.
How is the UK-EU reset going?
There has been genuine progress made by the UK government to reopen dialogues and rebuild the personal relationships that are necessary for future negotiations.
On October 2nd, the relationship reset sprang into action with Starmer and von der Leyen meeting in Brussels. Both leaders released a joint statement affirming their commitment to working together to address global challenges such as migration, and climate change. Shortly after on October 14th, the Foreign Secretary David Lammy attended the EU Foreign Affairs Council. Lammy became the first UK Foreign Secretary to attend the meeting since Brexit in a non-emergency. Hailing the meeting as “a historic moment that marks our EU reset”, Lammy discussed the “indivisible” nature of UK-EU security relations.
Most recently on December 9th, Rachel Reeves attended a meeting of Eurogroup finance ministers, the first Chancellor to do so since Brexit.In her speech, Reeves outlined further aspects of the relationship reset, namely that new trade negotiations would begin “in the new year”. The British Chambers of Commerce who represent tens of thousands of UK businesses welcomed the speech, saying: “We must export more…[UK businesses are struggling under huge regulatory and paperwork burdens”. Reeves’ speech follows a rare intervention by Andrew Bailey, the Bank of England Governer, who stated that the UK must “welcome opportunities to rebuild relations” with the EU.
What is planned for the UK-EU reset in 2025?
The new year should usher in a period of concrete negotiation. It has been rumoured that the EU’s position on a ‘youth experience scheme’ treaty with the UK is set to be approved by Member States’ representatives, which could set the ball rolling on further negotiations, particularly on the areas laid out in Labour’s manifesto. Starmer and von der Leyen have committed to holding regular UK-EU summits, with one scheduled for the first half of 2025, by which time it is hoped that an agreement on breaking down some of the barriers of the first Brexit deal would be in place.
2025 also sees the return of Donald Trump, his protectionist tariff agenda and scepticism towards the EU and NATO. In this turbulent geopolitical landscape, it is more important than ever for the UK and EU to formalise their relationship reset. And the British public agrees. Our latest polling revealed that 66% of Brits believe the EU shares our values, and 48% view the EU as our most important trading partner – compared to just 19% who want the UK to prioritise trade with the US.
Keir Starmer clearly has the public’s support to rebuild relations with Europe, and to be bold on breaking down trade barriers. Trying to achieve economic growth with Boris Johnson’s disastrous Brexit deal holding back businesses is like driving with the handbrake on. The cost of Brexit can no longer be ignored – if this government wants to put money in people’s pockets, a better deal with Brussels is the place to start.
