Reeves says closer ties between Britain and the EU will boost growth
Closer ties between Britain and the EU will boost economic growth, Chancellor Rachel Reeves will tell European finance leaders on Monday.
In the first address by a British chancellor to the Eurogroup after Brexit, Reeves will say resetting relations means “breaking down barriers to trade” as well as “helping businesses sell into each other’s markets”.
While Labor has refused to rejoin the bloc, it has repeatedly said it wants Britain to “deepen relations” with the EU.
The Conservatives said the Chancellor should work on how to reverse “disastrous budget measures which have demolished confidence”.
“If (Reeves) is interested in growth, he should ask the Prime Minister to fly to the US and talk to (President-elect) Trump about a US-UK trade deal, rather than taking Britain backwards. Should try to slow EU growth,” said Andrew Griffiths, shadow trade secretary.
The British Chambers of Commerce (BCC), which represents around 50,000 businesses, said “we have to export more” for the economy to grow but UK companies are “struggling under heavy regulatory and paperwork burdens”. “.
Reeves will propose building a “mature, trade-like relationship” between Britain and the EU at a meeting of Eurogroup finance ministers in Brussels.
“I know the last few years have been tumultuous,” she will tell her European counterparts. “Division and chaos defined the previous government’s approach to Europe. It will not define our approach.”
She will say: “I believe a closer economic relationship between the UK and the EU is not a zero-sum game. It is about improving both our growth prospects.”
Liberal Democrat Treasury spokeswoman Daisy Cooper said: “The Conservatives’ failed Brexit deal has been a disaster for the economy, with small businesses, farmers and fishermen all caught up in endless red tape.”
In a highly unusual move last month, Bank of England Governor Andrew Bailey said UK must “rebuild relations” with the EU,
The Governor has avoided commenting on Brexit due to the Bank’s independence from Westminster politics.
He said: “The impact on trade is greater on goods than services… but it underlines why we must be alert to opportunities to rebuild the relationship while respecting and welcoming that important decision of the British people.” Should do.”
Exports of goods such as food and agriculture have been hit by new trade barriers. But services, including banking, have performed better than expected.
Labor has said it is committed to implementing post-Brexit agreements made under the previous Tory government.
These include the Windsor Framework which covers trade between the UK and Northern Ireland.
But Reeves will tell finance ministers: “The reset in the relationship is about doing what is in the best interests of our shared economies and the people who depend on it.
“This means breaking down barriers to trade, creating investment opportunities and helping our businesses sell into each other’s markets.”
Reeves will deliver his speech at a crucial time for both the UK and European economies after President-elect Donald Trump threatened to impose tariffs of up to 20% on all goods imported into the US.
