Reeves calls for ‘reset’ with EU to spur UK growth amid global trade tensions

British Chancellor Rachel Reeves is set to call for a “reset” of economic ties between Britain and the European Union, arguing that closer ties would help break down barriers to trade and boost growth prospects for both sides.

In the first speech by a British adviser to the Eurogroup since Brexit, Reeves will say that while the UK is not seeking to return to the trading bloc, establishing a “mature business-like relationship” is in the mutual interest of both Britains. And the European Union.

Acknowledging that recent years have been fraught, Reeves will address European finance ministers in Brussels: “Division and chaos have defined the last government’s approach to Europe. They will not define us.” Despite Labor’s pledge to respect the UK’s decision to leave the single market and customs union, the Chancellor’s appeal suggests easing paperwork burdens, reducing export barriers, and seeking a veterinary agreement to facilitate smoother food and agricultural trade.

This push comes as British exporters suffer from red tape in the wake of Britain’s exit from the European Union, and as global trade risks intensify following President-elect Donald Trump’s threats to impose tariffs of up to 20 percent on imported goods. Reeves’ sentiments were echoed by the British Chambers of Commerce, warning that for the UK to grow, it “must export more”, but companies were “struggling under huge regulatory and paperwork burdens”.

However, any further alignment with EU standards could face political pressure, with conservatives criticizing Reeves for focusing on Europe rather than prioritizing a transatlantic trade deal with the incoming US administration. Meanwhile, the EU may seek concessions of its own, such as improved opportunities for young Europeans to live and work in Britain – an arrangement that Labor leader Sir Keir Starmer has previously ruled out.

Reeves’ intervention chimes with recent comments by Andrew Bailey, the governor of the Bank of England, who said Britain should seize “opportunities to rebuild relationships” with the EU, and with analysts warning that any US shift towards protectionism could pose a serious threat to European exporters. . Carsten Brzeski, global head of ING Research, noted that potential US tariffs and deregulation could “destroy” Europe’s growth potential, making constructive engagement between the UK and the EU more important than ever.

By promising to work constructively with the European bloc, Reeves aims to reassure investors and businesses that Britain’s economic future will not be determined by tense negotiations or entrenched isolation. Instead, it intends to show that cooperation, rather than confrontation, can strengthen Britain’s position and resilience amid uncertain global trading conditions.