Brussels: Chancellor Rachel Reeves will make a historic address to European finance leaders on Monday, calling for a reset of relations between the UK and the EU to drive economic growth.
In the first speech by a British chancellor to the Eurogroup since Brexit, Reeves will highlight the importance of “breaking down barriers to trade” and facilitating mutual market access for businesses.
Reeves is expected to stress that the UK’s renewed engagement with the EU should be focused on building a “mature, business-like relationship” that benefits both parties.
While the Labour Party has repeatedly ruled out rejoining the EU, it has clarified that it seeks to deepen the UK’s relationship with the bloc. Reeves’ speech is set to underscore Labour’s stance that the UK must collaborate more closely with the EU to foster economic growth, with a focus on reducing regulatory hurdles and supporting cross-border trade.
However, the Conservatives have criticised the approach, with Shadow Business Secretary Andrew Griffith accusing Reeves of trying to take Britain “backward” into what he called the “slow growth EU.”
Griffith argued that the chancellor should instead push for a trade deal with the US, calling on Prime Minister Rishi Sunak to “talk to President-elect Trump” about securing a US-UK agreement that could boost economic confidence.
The British Chambers of Commerce (BCC) has also voiced concerns about the UK’s trade relationship with the EU, particularly the burdens faced by businesses. Representing around 50,000 UK businesses, the BCC has stated that for the economy to grow, the country must increase exports.
In the address, Reeves will acknowledge the “fractious” nature of the past few years, referencing the “division and chaos” of the previous government’s approach to Europe. She will stress that her government’s approach will be rooted in pragmatism and cooperation, not conflict.
The call for a reset in UK-EU relations is supported by Bank of England Governor Andrew Bailey, who, in a rare intervention last month, urged for the UK to “rebuild relations” with the EU.
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