Rachel Reeves champions closer ties with the EU as key to UK economic growth

Rachel Reeves, the Shadow Chancellor of the Exchequer, has expressed confidence that the Labour Party can successfully advocate for a strengthened relationship with the European Union. She describes this alignment as the largest opportunity for economic advancement within the UK.

During her recent address at a London event hosted by the Bruegel think tank, Reeves highlighted the importance of trade with the EU, emphasising the bloc’s geographic proximity. She pointed out that almost half of the UK’s trade is conducted with EU nations, recognising this as a reality of economic gravity.

Reeves remarked, while deals with nations like India, the United States, and South Korea are desirable, none can rival the trade potential available through improved relations with Europe. Her comments come in light of the recent decision to rejoin the Erasmus student exchange programme, which she labelled as one of the most popular achievements of her tenure.

The Chancellor indicated a willingness to explore sector-specific alignment with EU regulations, suggesting that some measures might be unilateral while others could involve negotiations. Areas under discussion for future collaboration include agreements in food and farming, a youth mobility scheme, and the British participation in the EU’s carbon border adjustment mechanism.

Labour’s strategy excludes rejoining a customs union or the single market, as outlined in their general election manifesto. Reeves reaffirmed the party’s commitment to seeking a reset in relations with the EU, which will involve a review of the trade and cooperation agreement established by the previous government.

In her final remarks, Reeves underscored the need for collaboration with the EU on defence procurement, responding to increasing geopolitical tensions. This approach reflects a broader commitment to cooperation with other like-minded nations, highlighting the interconnectedness of Britain’s future with Europe.

The economic landscape remains uncertain, but Reeves expressed optimism about recent signals of productivity growth. As the Treasury prepares for a review of economic performance, the Labour Party remains steadfast in addressing the challenges posed by Brexit while advocating for stronger ties with Europe.