Chancellor Rachel Reeves will tell EU finance leaders today that closer relations between the UK and EU will boost economic growth. It will be the first address by a British chancellor to the Eurogroup since Brexit.
Labour has repeatedly ruled out re-joining the trade bloc, whilst also saying it wants the UK to ‘deepen ties’ with the EU.
Last week a new report by the Resolution Foundation said that Brexit had driven a trade divide between Britain’s struggling goods sectors and its powerhouse services industries. The threat of tariffs on goods by President-elect Trump risked ‘widening this trade divide further’.
Molly Scott Cato, Professor of Economics and Senior Vice Chair, European Movement UK:
“First we engage in the economic self-harm of creating barriers between our businesses and our largest trading market; now we face an impact on a similar scale from Trump’s tariffs. We need to end the silence around the costs of Brexit and start a conversation about how to reverse the damage as well as defending our businesses. Reducing trade frictions is a useful start, but it is clear that our best protection would be taking our place as part of the powerful EU trading bloc and joining the customs union.”
Dr Mike Galsworthy, Chair, European Movement UK, said:
“We need as a matter of urgency to reach an agreement on food and farm exports with a new veterinary agreement. We must also seek a reduction in red tape surrounding pan-European supply chains in manufacturing and textiles. Our goods exports have suffered for the past few years due to the unanticipated bureaucracy that Brexit caused our exporters and businesses.
“Brexit has been the elephant-in-the-room for far too long. It is now reckless to ignore the severe damage that continues to be done to the public finances. It has long been draining the financial and social wellbeing of every single one of us – and yet completely ignored as if it does not exist. We must now have a forward-facing public inquiry into the true cost of leaving the European Union and the possibilities for repairing the scandalous destruction that has been done.”
European Movement UK was formed in 1949 by SirWinston Churchill, to prevent further conflict between European countries. It remains a cross-party organisation campaigning on the benefits of close ties between the UK and EU.
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