Rachel Reeves has made a landmark appearance in Brussels, becoming the first UK chancellor to address Euro finance ministers since Brexit, with a compelling case for enhanced City of London access to European markets.
The shadow chancellor emphasised the mutual benefits of closer financial cooperation, highlighting London’s deep global capital markets as a crucial resource for funding growth across European economies. Her diplomatic approach marked a significant shift from previous Conservative governments’ stance, promising to rebuild trust and cooperation.
During her groundbreaking address, Reeves dismissed concerns about the UK becoming a ‘Singapore on Thames’ with light-touch regulation, instead advocating for a balanced approach that could serve both British and European interests. The chancellor’s vision encompasses support for start-ups, scale-up businesses, and critical infrastructure investments, particularly in the energy sector.
The Brussels visit coincided with an agreement to hold the next UK-EU financial services forum on 12 February, signalling positive momentum in bilateral relations. However, EU officials, including Eurogroup President Paschal Donohoe, maintained a cautious stance, emphasising financial stability as the cornerstone of sustainable economic growth.
While Labour has ruled out rejoining the single market and customs union, Reeves’s pragmatic approach suggests a willingness to explore practical solutions to existing trade barriers. The chancellor’s forthcoming visit to Beijing for financial cooperation talks further demonstrates the UK’s commitment to maintaining balanced international relationships.
The visit represents a crucial step in Labour’s strategy to reset UK-EU relations, though significant challenges remain, including ongoing discussions about Northern Ireland trade arrangements and future fishing rights agreements. Success will depend on both parties’ ability to find common ground while respecting their distinct regulatory frameworks
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