Keir Starmer has held the door open potentially for some form of youth mobility exchange with EU countries after talks in Germany with Olaf Scholz, who stressed to the British prime minister his wish for closer such ties.
While Starmer said at a press conference with the German chancellor that the UK did not have plans to join the EU’s youth mobility scheme – with No 10 having previously ruled out such a move – speaking to reporters later, he pointedly did not rule out setting up some sort of system for other link-ups, for example student exchanges.
Starmer said after the press conference that nothing of this sort had been discussed during his long bilateral meeting with Scholz at the federal chancellery in Berlin, as the focus was on bilateral ties rather than wider European links.
But he added: “We want a close relationship, of course, and I do think that can extend across defence, security, education and cultural exchange and, of course, trade.”
Asked to explicitly rule out any sort of youth mobility scheme, under which young people from within the EU could live, work and study for a limited period in the UK, with reciprocal rights for young Britons, Starmer did not, pointing to the UK-Germany treaty he and Scholz had discussed.
He said simply that any future talks with the EU over an improved post-Brexit deal would be based on red lines including no return to the free movement of people. Free movement is not the same as time-limited exchanges.
“Look, the treaty is a bilateral treaty, so that’s got nothing to do with youth mobility or anything like that. That’s to do with trade, defence, economy, illegal migration etc,” he said. “In relation to youth mobility, obviously, we’ve been really clear – no single market, no customs union, no free movement, no going back into the EU. So the discussion about a close relationship within the EU or with the EU is in that context and within those frameworks.
“I’m convinced that we can have a close relationship, and I think you heard from the chancellor himself, notwithstanding those clear red lines that we’ve got and we’ve always had.”
In his opening remarks at the press conference, Scholz said he was “happy about the announcement by Keir Starmer to seek a reset in the relations to the European Union. We want to take this hand which is reached out to us.”
The German leader said he had been worried that “the contacts between our societies, between Germans and people in the UK, have declined massively after Brexit and the Covid-19 pandemic”.
He added: “We want to change that, because if you know each other well, you understand each other better. We share similar views on this, and this is why we want to intensify the exchanges between Germany and the UK.”
Germany and other EU nations are believed to be keen for some type of youth mobility system to be established as part of a wider deal on post-Brexit relations, and while Labour had ruled this out, the UK would be expected to make some concessions as part of the negotiations.
Asked about the wider talks, Starmer pointed to a series of meetings with European leaders, adding: “I’m not going to set a timetable, or details out, but clearly, establishing a reset is a very important first step down that road.”
After the talks on Wednesday morning, the two governments sent out what was termed a “joint declaration on deepening and enhancing UK-Germany relations”, a precursor to a promised formal deal based on areas including defence and migration, which is scheduled to be agreed in the next six months.
This deal, the declaration said, “will reflect our status as the closest of partners in Europe, with the strongest possible bilateral cooperation on the issues that matter most to our populations”.
Brexit red tape on British businesses has caused goods trade between the UK and EU to slump and the problem is getting worse, a study has warned.
Many smaller UK producers have given up exporting small amounts to the EU after facing more rules and regulations, a report by Aston University Business School found.
Between 2021 and 2023, the study found UK goods exports to the EU fell 27% and imported goods by 32% compared with what it predicts would have happened without Brexit.
The report does not include the service sector, which has performed better than many experts had expected since Brexit.
The variety of trade export goods has also dropped, the study found, with 1,645 fewer types of British products exported to every EU country.
The authors say this is due to smaller British producers giving up on exporting small consignments to some EU nations after facing increased red tape.
Mary Quicke of Quicke's Cheeses in Devon told the BBC's Today programme that she had found it "really, really difficult to deal with all the regulatory burdens".
She said she used to supply four customers directly in the EU but "we had to give them away to somebody else".
"We just don't have the people to do the paperwork.”
The report said there was a "noticeable worsening of EU-UK trade in 2023".
"The negative impacts of the [trade agreement] have intensified over time, with 2023 showing more pronounced trade declines than previous years," it said.
Farmers, clothing makers, and wood and paper manufacturers have been among the hardest hit industries, with many sub-sectors' EU export value falling by well-over half.
The biggest drop in export value was for edible fruit and nuts, which nosedived 73.5%.
Trade with smaller and more distant countries in the EU has been affected the most, while trade with larger and closer countries has been affected the least.
However, the authors say a small number of sectors have proven resilient, especially in terms of exports to bigger EU economies such as Germany and France.
The tobacco, railway and aircraft sectors saw increases in the variety of exports to EU nations.
A government spokesperson said it will "work to improve our trade and investment relationship with the EU and tear down unnecessary trade barriers, while recognising that there will be no return to the single market, customs union or freedom of movement".
The BBC understands that in recent meetings with government, business representatives were invited to contribute early ideas on “resetting” the trade relationship with the EU, with a focus on “economic security”.
Progress is unlikely until next year, when the new European Commission is firmly established, and the UK has itself completed new industrial and trade strategies.
Editorial
The prime minister will struggle to get a better deal in Brussels if he is afraid to make a pro-European argument at home
The fact that European Union leaders and Britain’s prime minister say that relations should improve is no guarantee that they will. Overcoming structural obstacles to closer collaboration will require a consistent application of political will. Sir Keir Starmer’s visit to Brussels on Wednesday is a significant step in that direction. He held his first official bilateral meeting with the European Commission president, Ursula von der Leyen, as part of the “reset” that Labour promised in its election manifesto.
The prime minister has described his preferred relationship with European partners as “improved”, “ambitious”, “pragmatic” and “mature”. Any combination of those qualities would be welcome, but there is still some mystery surrounding the substance of what Sir Keir has in mind. The most concrete proposal, from the UK side, is a defence and security pact. This would go beyond military cooperation, encompassing energy supplies and combating the climate crisis. That makes sense from a strategic perspective and has the technical advantage of being feasible without amending the 2020 Brexit trade and cooperation agreement (TCA).
There is no appetite in Brussels for a renegotiation of the TCA and Sir Keir has, in any case, ruled out any fundamental reconfiguration of the economic settlement. What adjustments might be made for the sake of easing border frictions and facilitating investment must comply with the prime minister’s pledge never to rejoin the EU single market or customs union. That doesn’t leave much that can dramatically shift the economic dial, but it isn’t a negligible agenda. Britain would still benefit from a veterinary deal, regulatory alignment for some industries, mutual recognition of qualifications, visa facilitation for touring musicians and other such ameliorations of Boris Johnson’s hard Brexit regime.
Measured in terms of service to the UK national interest, Mr Johnson’s deal was an abject failure, but it was very successful at obstructing any future reconciliation. The bridge was thoroughly burned. Even Sir Keir’s relatively modest wishlist touches on matters of single-market integrity that give EU leaders cause to warn London against any renewed attempt at “cherrypicking”.
What Labour might think of as low-hanging fruit for a better deal can still only be picked by hard, technical negotiation. There has to be a clear offer of what the EU might get in return. One item already on the table from the European side is a youth mobility scheme. Restoring opportunities for British students and young people to spend longer periods of time in the rest of Europe in exchange for reciprocal access to the UK should not even be seen as a concession. It would restore a mutual benefit that Brexit withdrew from young people across the continent.
But anything that implies easier transit across borders triggers Labour’s neuralgic anxiety about perceived backsliding on post-Brexit immigration control. Sir Keir will have to overcome that reservation if he is serious about resetting relations. Flinching from a hostile Eurosceptic press might have been a necessary tactic in opposition, but in government, a prime minister has the platform and authority to win arguments and set the agenda.
The foundations of an improved EU-UK relationship are now in place, but building on that requires greater clarity of purpose and courage in expressing the conviction that Britain’s interests are served by restoring ties that should not have been severed in the first place.
Exclusive: Starmer’s chief negotiator says the prime minister is “ambitious” about resetting the UK’s relationship with the EU in a letter seen by The Independent
Keir Starmer is being pushed to be “more ambitious” with his EU reset after a letter to campaigners confirmed that he only hopes to make Brexit work.
The Independent has seen a letter to the pro-EU campaign group the European Movement, defending the strategy but refusing to take more radical action.
The letter from European affairs minister Nick Thomas-Symonds, who will head the EU reset talks, comes just 48 hours after the UK government and the EU were once again forced to delay a new Brexit digital border system because of fears it will lead to fruit and vegetables rotting which are waiting to be processed.
Mr Thomas-Symonds’ letter was a response to an open letter from the European Movement with a shopping list of demands to end the damage caused by Brexit.
These included agreeing the Youth Mobility Scheme for free travel for under-30s, as well as tackling border delays and removing trade barriers.
The minister avoided addressing these issues in his response but said: “Delivering these new agreements will take time, but we are ambitious, have clear manifesto priorities and want to move forward at pace.”
He noted: “It is important we look forwards not backwards and do not reopen Brexit divides. Therefore, there will be no return to the single market, customs union or freedom of movement. However, we are clear that a strong UK-EU alliance is vital, and that we are stronger when we work with others.”
He set out the aims of wanting to “strengthen ties, secure a broad-based security pact and tackle barriers to trade”.
He added: “We are looking to turn the page - reinvigorating alliances and forging new partnerships with our European friends, rather than reopening the divisions of the past.”
With concerns growing over the continued impact on the UK economy of Brexit, the letter did not provide much comfort for those looking for a more substantial change.
Dr Mike Galsworthy, chair of European Movement UK, said: "We are encouraged by the Labour government’s stated intention to rebuild with the EU for mutual benefit. However, sloganising ‘make Brexit work’ will not help the UK’s beleaguered economy, when our polling shows the public overwhelmingly want to see the economy prioritised over Keir Starmer’s red lines. It’s time for change.
“A reset requires an actual assessment of where we are now and where economic opportunities lie - a forward-looking inquiry is what we need, to assess the possibilities for our future relationship with the EU.
“Additionally, such a move sits outside the prime minister’s red lines, and affords him the opportunity to show a long overdue level of transparency and public inclusion on constructive discussion of Britain’s developing relationship with the EU."
Trade body Energy UK also estimates total energy cost of leaving bloc could reach £10bn by end of decade
Brexit has added up to £370m a year to the price of power supplies from Europe, according to industry representatives who calculate that the total energy costs of leaving the EU could amount to £10bn by the end of the decade.
Energy UK, the sector’s trade body, has called on Keir Starmer to negotiate a closer trading relationship with the bloc as part of the “reset” he is seeking with Brussels.
Before Brexit, the UK procured power through the EU’s internal electricity market, which brought together bids and offers in a system known as “single day-ahead coupling”, using an algorithm to optimise pricing and flows.
The UK imports and exports electricity through interconnectors – huge undersea cables – to Norway, Ireland, France, Belgium, Denmark and the Netherlands.
After the post-Brexit trade deal came into force in January 2021, the British market was no longer part of the algorithmic system, reducing the efficiency of trading and pushing up costs.
“One of the unfortunate consequences of Brexit is that we have been left with these very inefficient trading arrangements, and there is a cost to that,” said Energy UK’s deputy director, Kisha Couchman.
“There’s been upwards of somewhere between £100m and £370m and that has ultimately been borne by the consumer,” she told a British Irish Chamber of Commerce conference in Dublin.
The price increase is another consequence of leaving the single market under the “hard Brexit” sought and sealed by Boris Johnson’s government in late 2020.
Energy UK said relinking the UK to a unified trading operation would not only reduce the cost of electricity, but also create a “greater incentive for decarbonisation across both jurisdictions”.
It said a return to a more efficient import and export arrangement would benefit both the UK and the EU as they strive to achieve net zero by 2050.
“Linkage is critical for the UK and EU industries and is supported by British and European industry and civil society alike. This should be a priority for the new UK government to address,” it said in a recent report.
In a briefing issued this week, Energy UK said
: “Unless the UK moves toward closer cooperation with the EU on energy and climate it may lead to additional costs of up to £10bn this parliament through higher energy bills and lower Treasury revenues,” it said.
Editorial
The party has gone too far down the path of Eurosceptic delusion to have a rational debate about its legacy
The Conservative leadership contest that concludes this weekend has followed a familiar pattern. What is left of a moderate centre-right Tory tendency has failed to assert itself or even make a compelling argument.
The One Nation caucus didn’t even manage to get a candidate in the final round, thus guaranteeing that the activist choice, whether it is Kemi Badenoch or Robert Jenrick, will be from the radical right. This has been the story of Tory ideological evolution since David Cameron’s decision to call a referendum on leaving the European Union. A gambit that was intended to silence Eurosceptic battle cries for a generation had the opposite effect, turning a fringe proposition into the central pillar of British foreign policy.
Brexit is by far the biggest legacy from 14 years of Conservative government. And yet, perversely, it has not been celebrated, or even much discussed, in the leadership contest – or not in terms of economic and political fact. To the extent that “Europe” has featured in the debate, it is almost exclusively because Mr Jenrick has made quitting the European convention on human rights (ECHR) a central demand of his candidacy. Ms Badenoch is not opposed to that idea, but avoids a firm commitment.
But the ECHR is not even part of the EU. The Tory obsession with it has two components. One is the claim – mistaken or dishonest – that human rights law is a significant reason why Britain has had high levels of net migration in recent years. The second is a fundamentalist view of national sovereignty that treats multilateral humanitarian treaties as instruments of foreign interference. This amounts to an argument that the UK should heed international law selectively and only if it suits the government of the day – an ethos shared by rogue regimes and dictators.
Those arguments reflect a radicalisation of Brexit ideology well beyond the original, technical questions of EU membership. Once the declared goal of regulatory emancipation was achieved, the Eurosceptic movement that vilified Brussels as the centre of a bureaucratic conspiracy against British enterprise and border control mutated. It has evolved into a more wide-ranging species of illiberal nationalism.
That brings the Conservatives ever closer in arguments and style to far-right parties across Europe, although the continental version targets the EU for capture and subversion from the inside rather than demanding release from its structures.
Neither Mr Jenrick (who voted remain in 2016), nor Ms Badenoch (a leaver from the start) has anything practical to say about the economics of Brexit. Neither candidate makes a virtue of the trade and cooperation agreement that Boris Johnson signed.
The leadership contest has avoided talking about the consequences of Mr Johnson’s deal for the same reason that it was absent from the Tories’ general election campaign. Anyone who understands the real-world impact knows that Brexit has been a disaster, and anyone who is determined to believe otherwise has learned to change the subject.
Without any incentive to evaluate the economics of separation from Europe honestly, and having silenced internal voices that might have attempted such an audit, the Conservative party is locked into a cycle of radicalisation in the ideological spirit of Brexit. That path towards delusional nationalism and in flight from practical reality seems now unavoidable for the party, regardless of which candidate is named as leader.
Exclusive: With the prospect of a brutal global trade war looming, critics of the UK’s current Brexit deal have said the country needs to rejoin the customs union, single market or the bloc itself to shield itself from the devastating fallout
Britain must urgently rebuild ties with Europe if Donald Trump is elected on Tuesday, pro-EU campaigners have warned.
With the prospect of a brutal global trade war looming, critics of the UK’s current Brexit deal have said the country needs to rejoin the customs union, single market or the bloc itself to shield itself from the devastating fallout.
The former president has threatened to impose tariffs on all imports to America if he returns to the White House, which would cripple the UK and global economy. The US is Britain’s single biggest trade partner by far, above Germany, the Netherlands, France and China.
And Mr Trump has threatened a blanket 10 per cent tariff on all imports, with the levy rising as high as 60 per cent for goods from China. He has said “tariff is my favourite word”, but critics have warned the fallout of his protectionism would be higher prices for consumers in the US and globally.
And, amid fears a solitary UK would face a heightened impact, campaigners called for Sir Keir Starmer to urgently rebuild trade ties with the EU to insulate the country from the trade war that would follow Mr Trump’s re-election.
Former Liberal Democrat minister Sir Nick Harvey said Britain must “make a clear choice to be part of a strong Europe”, both in terms of strength on defence and security and trade and the economy.
Sir Nick, chief executive of the European Movement UK, told The Independent a Trump win could add to the urgent need for Britain to build stronger ties with Europe - but stressed that Europe can no longer reply on protection from the US no matter who wins.
He added: “The time for posturing on the sidelines is over. Sensible conversations are more crucial than ever before, about the damage of leaving the European Union, and what shape our future relationship should take.”
And SNP MP Stephen Gethins told The Independent that post-Brexit Britain is “more isolated than at any other time in the post war period”.
That leaves us more vulnerable in terms of hard security as well as to the impact of a trade war,” he added. Mr Gethins said: “The best means of protecting ourselves and making us more secure is to rejoin the EU, and at least the Single Market. At a time when other European democracies are enhancing security cooperation and deepening trade links, it is the best means of protecting ourselves in a more dangerous world with an increasingly isolationist US that will remain a reality regardless of tonight’s result.”
Naomi Smith, chief executive of the Best for Britain campaign group said: “With weaker democratic guardrails and an administration of loyalists, Trump has pledged to use a second term to drive through draconian tariffs on all imports to the US including those from the UK, posing a real risk to growth.”
But, while warning of the danger of a second Trump term, Ms Smith called for the prime minister to pursue closer ties with Europe regardless.
She said: “The UK Government must make our economy less vulnerable by rebuilding ties with our closest neighbours and allies in Europe through beneficial alignment, mutual recognition of qualifications and standards, plus a reciprocal youth mobility scheme.”
The prime minister has promised to fix Britain’s damaged relationship with the European Union for the benefit of “generations to come”.
But Sir Keir has ruled out rejoining the single market and customs union or reinstating freedom of movement with the bloc.
So far, the PM’s post-Brexit reset has yielded little positive progress, with further talks scheduled with EU leaders later this year and in the first half of 2025.
Peggy Grande told The Independent that Donald Trump is likely to give a ‘preferential trade deal to the UK’
A possible trade war with the US will not be as bad as feared, a former political appointee in the last Trump administration has said - claiming the president-elect will target the European Union more significantly than Britain as he wants to see a “successful Brexit”.
Peggy Grande, who was a political appointee for Donald Trump, told The Independent he is likely to give a “preferential trade deal to the UK” and she thinks tariffs will “more greatly affect the EU than the UK”.
It comes amid fears of a global trade war, after the Republican politician pledged to impose levies of 10 per cent on all goods imports from US trading partners, and up to 60 per cent and 100 per cent for China and Mexico.
But Ms Grande, who also worked as Ronald Reagan’s executive assistant after he left the White House, said Mr Trump “believes in the special relationship”, adding: “I anticipate that if tariffs are involved they will more greatly affect the EU than the UK.
“Donald Trump has a great fondness for the UK and wanted to see a fully implemented successful Brexit and wants to help with that still by giving a preferential trade deal to the UK.
“Go back to the US-UK free trade agreement he was working on during his first term - I anticipate he will pick that up right where he left off and lean into it again, especially in alignment with tariffs on China.
“The more our countries can unite to put pressure on China the more it will benefit us both from a trade perspective. It will require both sides though. Trump is committed. Will the UK be as well? That remains to be seen.”
But former British ambassador to the US Kim Darroch said he expects Mr Trump to follow through on his threat, possibly putting chancellor Rachel Reeves on a collision course with the president-elect.
Ms Reeves is gearing up to push back against the possibility of tariffs, with the chancellor expected to use a keynote speech this week to promote free and open trade between nations as a cornerstone of UK economic policy.
She is expected to use her first Mansion House speech to set out a post-budget plan to “go for growth”, as well as making the case that global business connections have supported economies around the world in times of crisis and call for continued partnership with Europe, the Middle East, Asia and US.
Mr Darroch said he thinks there will be a “stark choice” for Britain, between siding with the EU or sacrificing our agriculture.
Writing about Mr Trump’s remarks on free trade in The Observer, Mr Darroch said: “On tariffs I expect the exact opposite of a mere threat.
“I think Trump will impose tariffs on all US imports immediately and say, ‘If you want them lifted, offer me something to rebalance trade’.
“The EU will almost certainly retaliate and the UK will face a difficult decision. Do we match EU retaliatory tariffs? Or do we seek a bilateral deal, like a free trade agreement?
“I think an FTA would be on offer from Trump as in 2017: but the top US demand, as was the case then, would be unrestricted access to the UK market for the low-cost products of the US agricultural sector, hormone-treated beef and chlorine-washed chicken included. So the stark choice would be: side with the EU or sacrifice our agriculture.”
There is already growing fury from farmers in the UK over the government’s decision to extend inheritance tax to cover agricultural properties.
But the governor of New Jersey state Phil Murphy suggested his “gut” is telling him the president-elect would not pursue tariffs “against allies like the UK”.
Asked about the issue, the Democrat said: “Do I believe it? I’m not sure. I think if you and I were sitting and speaking about the People’s Republic of China, I’d believe it.”
On Sunday, Treasury minister Darren Jones said Whitehall officials will be “considering lots of different scenarios”, amid growing concerns about the possible impact of tariffs.
Mr Jones said the president-elect “recognises” the important relationship between the UK and America, adding: “The position of the government is that we support free trade and we support the trading relationship between the United States and the United Kingdom.”
A government source confirmed that officials would “continue” to “take advice” to ensure that Britain was “in the best possible position”.
“We look forward to working closely with President Trump’s team to strengthen UK-US trading relations to support businesses on both sides of the Atlantic,” the source said.
[...]
Speaking to BBC’s Today programme, Moore said: “The UK really has to choose between the Europe economic model of more socialism and the US model, which is more based on a free enterprise system. I think the UK is kind of caught in the middle of these two forms of an economic model. I believe that Britain would be better off moving towards more of the American model of economic freedom.
“If that were the case, I think it would spur the Trump administration’s willingness to the free trade agreement with the UK. I think it would make sense for both Britain and the United States.”
Previous efforts to agree a UK-US trade deal have been scuppered by rows over agricultural standards, particularly fears over allowing chlorinated chicken or hormone-fed beef on to British supermarket shelves.
Moore said: “I think we have the best agriculture centres in the world. So I wouldn’t see that as a problem from this side of the ocean, but I do understand that in Britain. I know the last time I was in London, that was a big issue with many of the British folks I talked to.”
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Pascal Lamy, former head of the WTO, says Britain will have to take sides if new US administration slaps hefty tariffs on imports, as fears grow over possible trade war
The former head of the World Trade Organisation (WTO) has said that the UK should side with the European Union over trade and economic policies rather than a Donald Trump-led US, as fears grow over a possible global trade war.
