UK chancellor Rachel Reeves on Monday called for Britain and the EU to “speak with one voice” to defend common values on the economy, trade and defence, as she took aim at the turmoil unleashed by US President Donald Trump.
Reeves was speaking at the end of a day of meetings in London between UK ministers and EU commissioners, where both sides looked to deepen economic integration, including by unwinding Brexit.
In talks at 11 Downing Street, the UK government said Reeves told the group that “we are sliding towards a world where the rules are less clear”, in an apparent reference to Trump’s tariffs and security threats.
“Against that backdrop the UK and EU share values and objectives when it comes to the economy, to trade and to security, and she emphasised the need to work together and — as far as possible — speak with one voice,” the government added.
Valdis Dombrovskis, EU economy commissioner, also implied that Trump was bringing the two sides together after Brexit, when he said: “In a changing geopolitical order, co-operation with like-minded partners to tackle shared global challenges is essential.”
In a sign of the new relationship, Nick Thomas-Symonds, Britain’s chief EU negotiator, vowed to ditch “inflexible ideology” and accept Brussels rules in key areas to boost trade, which he said were part of a “proper Brexit”.
Writing in the Financial Times, Thomas-Symonds defended the UK government’s plans to unstitch Brexit, declaring: “The UK is making a sovereign choice to align with another high-standards jurisdiction — the EU — because it is in our economic interests to do so.”
But Thomas-Symonds, EU relations minister, gave a veiled warning to Labour colleagues who want to rapidly unwind Brexit — possibly by joining a new customs union with the bloc — saying it was crucial to be honest with voters that progress would take time.
Referring to promises made by the pro-Brexit campaign on the side of a bus during the 2016 referendum, Thomas-Symonds said: “There are temptations to reach beyond what is realistic or deliverable.” He added: “We cannot create our own version of the red bus promise.”
Wes Streeting, health secretary and a potential leadership rival to Starmer, has talked up the benefits of the UK joining a customs union with the EU, while the prime minister favours greater alignment with the single market.
Three EU diplomats said the planned reset in UK relations with the bloc would take time and further integration with the single market would prove difficult given that countries such as Norway and Switzerland pay heavily for access.
The meeting on Monday involved Dombrovskis and EU trade commissioner Maroš Šefčovič, who discussed progress towards the next summit between the two sides.
Thomas-Symonds was joined by business secretary Peter Kyle. Reeves joined the talks to discuss the easing of trade barriers, defence and Ukraine.
In his article, Thomas-Symonds said the reset with the EU agreed in principle last May — which includes breaking down barriers to food and energy trade and a youth mobility scheme — would increase the size of the UK economy by £9bn a year by 2040.
However John Springford, trade economist at the Centre for European Reform think-tank, noted that the promised additional growth amounted to just 0.3 per cent of UK GDP.
The British Chambers of Commerce said it hoped that Monday’s meeting would lay the groundwork for “real impetus” in the reset talks.
William Bain, the business lobby group’s head of trade policy, said: “There are a wide range of regulatory compliance issues that are hurting cross-border trade, from carbon border taxes to food checks.
“Progress on these, as well as defence, youth mobility and electricity markets, is needed to deliver higher economic growth.”
The UK has been pushing for a summit in May to ink agreements to key parts of the reset with Brussels, including removing border checks on food and drink exports, relinking carbon pricing and rejoining the EU’s internal market for electricity.
However, the two sides remain at odds over the shape of a youth mobility scheme for 18-30-year-olds and whether the UK should make EU budget contributions as a price of rejoining the bloc’s electricity market.
EU officials said Šefčovič had warned that compromises needed to be found ahead of any future summit, rather than waiting for a last-minute intervention by politicians.
Among the toughest issues is whether EU students should return to having access to UK universities at the same price — currently £9,535 a year — as their British counterparts, or at a reduced rate compared to current international fees, which can be three times that amount.
The UK government has ruled out “home” fees for EU students, while UK universities have warned that such a move would be unaffordable at a time when the sector is laying off staff and facing multiple financial difficulties.