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3 mins read

Reassessing Brexit

Dec 08, 2024
Business
General
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The United Kingdom’s departure from the European Union in 2020 marked a significant shift in its political and economic landscape. In November 2023, European Commission President Ursula von der Leyen expressed personal regret over Brexit, suggesting that future generations might “fix” the perceived mistake. These remarks have reignited discussions about the UK’s relationship with the EU, now under the leadership of Prime Minister Keir Starmer and the Labour government.

Ursula Von der Leyen
Ursula Von der Leyen

Labour’s Stance on EU Membership

Prime Minister Keir Starmer has consistently ruled out rejoining the EU, the single market, or the customs union. In May 2023, he stated, “Britain’s future is outside the EU,” emphasizing a commitment to making Brexit work while seeking closer economic, diplomatic, and military collaboration with European partners. This position was reaffirmed in Labour’s 2024 general election manifesto, which pledged to honor Brexit and be “confident in our status outside of the EU.”

Pursuing a ‘Closer Partnership’

Despite ruling out rejoining, the Labour government is actively pursuing a closer partnership with the EU. Chancellor Rachel Reeves has engaged in discussions with European finance ministers to enhance trade relations, focusing on reducing barriers in sectors such as pharmaceuticals, automotive, and agriculture. Reeves has also committed to upholding existing agreements, including the Windsor Framework governing Northern Ireland trade.

Prime Minister Starmer has emphasized the importance of strengthening ties with both the EU and the United States, rejecting the notion that the UK must choose between the two. He advocates for robust economic and strategic relationships with both, aiming to position the UK as a bridge between major global players.

Challenges and Considerations

The Labour government’s approach faces several challenges. The EU has indicated that any reset in relations would require the UK to adhere to existing agreements and swiftly resolve issues such as fishing rights, with the current deal expiring in June 2026. Brussels emphasizes the “no cherry-picking” principle, asserting that improved relations are contingent upon comprehensive cooperation.

Domestically, industries like chemicals express skepticism about the potential benefits of a reset, citing ongoing difficulties with dual regulatory regimes and increased compliance costs post-Brexit. The Chemical Business Association reports that many businesses continue to face challenges in importing and exporting products, with uncertainty over future regulatory frameworks impacting growth and investment.

Public Sentiment and Future Prospects

Public opinion appears to be shifting, with a YouGov survey indicating that 59% of Britons would vote to rejoin the EU if a referendum were held, while 41% would oppose it. This sentiment suggests a growing desire among the public for closer ties with Europe, potentially influencing future policy directions.

The Labour government’s strategy reflects a pragmatic approach to navigating the complexities of post-Brexit relations. By seeking to enhance cooperation and reduce trade barriers while respecting the referendum outcome, the government aims to position the UK as a proactive and reliable partner on the European stage. The success of this approach will depend on balancing domestic priorities with international expectations, addressing industry concerns, and responding to evolving public sentiment.

While the Labour government under Prime Minister Keir Starmer has ruled out rejoining the EU, it is actively working towards a closer partnership with Europe. This strategy involves upholding existing agreements, seeking to reduce trade barriers, and strengthening economic and security ties. The path forward will require careful navigation of domestic and international challenges, with the ultimate goal of fostering a mutually beneficial relationship between the UK and the EU.

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