Reeves aims for ‘businesslike’ relationship with EU in finance chiefs meeting

The UK and EU should aim to have a “businesslike” relationship going forward, the Chancellor is to say as she meets European finance chiefs.

Rachel Reeves will be the first Chancellor to attend the Eurogroup meeting of EU finance ministers since Brexit, as the Government continues its efforts to reset relations with the bloc.

The Chancellor will acknowledge Britain and Europe’s “fractious” relationship in recent years, telling her counterparts: “Division and chaos defined the last government’s approach to Europe. It will not define ours.”

Trust

She will add: “We want a relationship built on trust, mutual respect, and pragmatism. A mature, businesslike relationship where we can put behind us the low ambitions of the past and move forward, focused instead on all that we have in common.

“And all that we might achieve together to keep our countries safe, secure and prosperous.”

Three key areas in the UK-EU relationship will be the focus of Ms Reeves’ speech: tackling shared challenges like the war in Ukraine, championing free trade, and strengthening economic partnerships.

Ministers have however ruled out returning to the single market, the customs union, and freedom of movement as they seek to build closer ties with Europe.

Ms Reeves will add that a closer economic relationship between the UK and the EU is “not a zero-sum game”.

“It’s about improving both our growth prospects,” she will add.

Reset

The Chancellor will continue: “The reset in relations is about doing what is in the best interests of our shared economies and those that depend on it.

“That means breaking down barriers to trade, creating opportunities to invest and helping our businesses sell in each other’s markets.

“That’s why I’m here today; that’s what our reset seeks to achieve.”

The Lib Dems said ministers’ plans to rebuild ties with Europe “needs more than just warm words”.

Daisy Cooper, Liberal Democrat deputy leader and Treasury spokesperson, added: “The Government needs to be more ambitious about rebuilding stronger ties with our European allies.

“It’s difficult to understand why they are failing to pursue the UK-EU Youth Mobility Scheme, which would be a good first step, provide a boost to the economy and give young people opportunities to live and work across Europe.”

‘Devastating budget measures’

For the Tories, shadow business secretary Andrew Griffith meanwhile said the Chancellor “should be spending all her energy working out how to reverse her devastating budget measures that have crashed confidence and will see fewer jobs, lower salaries, and higher taxes”.

He added: “If she is interested in growth, she should tell the Prime Minister to jump on a plane to the US and talk to Trump about getting a US-UK trade deal done, not trying to take Britain backwards into the slow growth EU.”