In a significant step toward mending UK-European Union relations, Britain’s finance minister Rachel Reeves will advocate for reducing trade barriers during her address to euro zone finance ministers on Monday. The meeting, which marks the first appearance of a British finance minister at the Eurogroup since Brexit, is seen as a pivotal moment in Labour’s strategy to reset relations with the EU. Reeves’ remarks will focus on stimulating mutual economic growth and moving beyond the strained ties left by previous Conservative administrations.
“Closer economic ties between the UK and EU aren’t a zero-sum game. By reducing barriers, we can unlock growth potential for both sides,” Reeves is expected to say, according to excerpts from her prepared speech. She will highlight the government’s pragmatic approach to trade and collaboration, aiming to prioritize shared economic interests. Reeves will underscore that this reset is about doing what’s best for the economies on both sides of the Channel, emphasizing the importance of breaking down barriers to trade.
Labour’s new approach under Prime Minister Keir Starmer avoids rejoining the EU’s single market or customs union and rules out a return to freedom of movement. Instead, the government aims to negotiate a veterinary agreement to reduce border checks, signaling a focus on practical measures to ease trade. While the EU has expressed interest in improving mobility schemes for young people, both sides acknowledge that negotiations in the coming year will be complex and challenging.
Despite these differences, Reeves remains optimistic about the potential for progress. “The past few years were marred by division and chaos. We are committed to productive, trust-based discussions,” she is expected to say. Her remarks signal a clear departure from the contentious tone of the past, emphasizing a focus on building trust and engaging in “mature, business-like” negotiations.
Reeves will conclude by urging both sides to move beyond past discord and seize the opportunities for mutual growth. “We want to leave behind the low ambitions of the past and focus on all that unites us. This reset is about building trust, mutual respect, and pragmatism,” she will tell the ministers. As formal talks are set to begin in 2024, Reeves’ call for collaboration underscores Labour’s commitment to restoring stability and fostering growth in one of the UK’s most critical economic relationships.
