BRUSSELS — The EU and U.K. must overcome historic gripes and “reset” their
relationship to be able to work together in an increasingly uncertain world, the
bloc’s top parliamentarian said.
European Parliament President Roberta Metsola used an address to the Spanish
senate on Tuesday to call for closer ties with the U.K. as London steps up
efforts to secure smoother access to European markets and funding projects,
after the country voted to leave the bloc in 2016.
“Ten years on from Brexit … and in a world that has changed so profoundly,
Europe and the U.K. need a new way of working together on trade, customs,
research, mobility and on security and defense,” Metsola said. “Today it is time
to exorcize the ghosts of the past.”
Metsola called for a “reset” in the partnership between Britain and the EU as
part of a policy of “realistic pragmatism anchored in values that will see all
of us move forward together.”
Her speech comes after British Prime Minister Keir Starmer said he intended to
try and ensure his country’s defense industries can benefit from the EU’s
flagship SAFE scheme — a €150 billion funding program designed to boost
procurement of military hardware.
That push has been far from smooth, with a meeting of EU governments on Monday
night failing to sign off U.K. access to SAFE, despite France — which has
consistently opposed non-EU countries taking part — supporting the British
inclusion.
Starmer has also signaled in recent days that he is seeking closer integration
with the EU’s single market. Brussels has so far been reluctant to reopen the
terms of the U.K.’s relations with the bloc just six years after it exited.
While those decisions lie with the remaining 27 EU member countries, rather than
the Parliament, Metsola’s intervention marks a shift in tone that could bolster
the British case for closer relations. In the context of increasingly tense
relations with the U.S., capitals are depending on cooperation with British
intelligence and military capabilities and in key industries.
Europe must take “the next steps towards a stronger European defense, boosting
our capabilities and cooperation, and working closely with our NATO allies so
that Europe can better protect its people,” Metsola said.
Tag - Brexit
LONDON — Keir Starmer signaled that the U.K. is ready to try again to forge
closer defense ties with the European Union, after talks on British access to
the SAFE loan program collapsed last year.
Speaking on a visit to China, the prime minister said he was hoping to make
“some progress” on spending, capability and co-operation between European
countries and Britain, whether through Security Action for Europe (SAFE) or
other initiatives.
“I have made the argument that that should require us to look at schemes like
SAFE and others to see whether there is a way in which we can work more closely
together,” he told reporters traveling with him to Beijing.
Negotiations for Britain to take part in the EU’s loan initiative for defense
procurement failed in November after a dispute about how much the U.K. would
have to pay.
The failure to reach a deal has been a source of frustration to Labour figures
in the U.K. and European allies who want to show the U.K. can achieve closer
alignment with the bloc after Brexit.
The U.K. can, for now, access SAFE as a third country, but is not entitled to
fuller participation as was originally envisaged.
EU ambassador to Britain Pedro Serrano and British officials have both
previously raised expectations that the U.K. could reach an agreement to be
included in another round of SAFE, but there is not currently one under
consideration.
A European Commission spokesperson said: “We will not speculate on a possible
second SAFE fund at this stage.”
Another avenue for closer cooperation could center on the EU’s €90 billion loan
for Ukraine, which the Netherlands and many other countries would like to see
the U.K. join.
London could also be asked to pay a fee to join the loan. France, with the
support of other countries, last week suggested that third-party countries that
take part should contribute.
They made the argument that since EU member countries pay interest on the loan
it would be unfair if non-EU countries don’t pay anything, according to three EU
diplomats.
However, British officials said this idea was not under active discussion. A U.K
government spokesperson said: “We do not comment on internal EU processes,”
pointing out that the country has so far committed a total of £21.8 billion in
support for Ukraine through military and fiscal assistance.
European Commissioners Maros Šefčovič and Valdis Dombrovskis are visiting London
Monday for a series of meetings with British ministers, ahead of a planned
second EU-U.K. summit later this year. Their talks this week are expected to
focus on trade.
As he left China, Starmer told reporters that he wanted to “get closer” to the
EU then he has currently set out, not only on defense and security but also
energy, emissions and trade.
Referring to a second annual U.K.-EU summit planned later this spring, Starmer
added: “We will not only follow up on the 10 strands that we set out at last
year’s summit, we’ll also want to go closer with an iterative process.”
Jacopo Barigazzi and Jon Stone contributed to this report.
LONDON — Keir Starmer is off to China to try to lock in some economic wins he
can shout about back home. But some of the trickiest trade issues are already
being placed firmly in the “too difficult” box.
The U.K.’s trade ministry quietly dispatched several delegations to Beijing over
the fall to hash out deals with the Chinese commerce ministry and lay the
groundwork for the British prime minister’s visit, which gets going in earnest
Wednesday.
But the visit comes as Britain faces growing pressure from its Western allies to
combat Chinese industrial overproduction — and just weeks after Starmer handed
his trade chief new powers to move faster in imposing tariffs on cheap,
subsidized imports from countries like China.
For now, then, the aim is to secure progress in areas that are seen as less
sensitive.
Starmer’s delegation of CEOs and chairs will split their time between Beijing
and Shanghai, with executives representing City giants and high-profile British
brands including HSBC, Standard Chartered, Schroders, and the London Stock
Exchange Group, alongside AstraZeneca, Jaguar Land Rover, Octopus Energy, and
Brompton filling out the cast list. Starmer will be flanked on his visit by
Trade Secretary Peter Kyle and City Minister Lucy Rigby.
Despite the weighty delegation, ministers insist the approach is deliberately
narrow.
“We have a very clear-eyed approach when it comes to China,” Security Minister
Dan Jarvis said Monday. “Where it is in our national interest to cooperate and
work closely with [China], then we will do so. But when it’s our national
security interest to safeguard against the threats that [they] pose, we will
absolutely do that.”
Starmer’s wishlist will be carefully calibrated not to rock the boat. Drumming
up Chinese cash for heavy energy infrastructure, including sensitive wind
turbine technology, is off the table.
Instead, the U.K. has been pushing for lower whisky tariffs, improved market
access for services firms, recognition of professional qualifications, banking
and insurance licences for British companies operating in China, easier
cross-border investment, and visa-free travel for short stays.
With China fiercely protective of its domestic market, some of those asks will
be easier said than done. Here’s POLITICO’s pro guide to where it could get
bumpy.
CHAMPIONING THE CITY OF LONDON
Britain’s share of China’s services market was a modest 2.7 percent in 2024 —
and U.K. firms are itching for more work in the country.
British officials have been pushing for recognition of professional
qualifications for accountants, designers and architects — which would allow
professionals to practice in China without re-licensing locally — and visa-free
travel for short stays.
Vocational accreditation is a “long-standing issue” in the bilateral
relationship, with “little movement” so far on persuading Beijing to recognize
U.K. professional credentials as equivalent to its own, according to a senior
industry representative familiar with the talks, who, like others in this
report, was granted anonymity to speak freely.
But while the U.K.’s allies in the European Union and the U.S. have imposed
tariffs on Chinese EVs, the U.K. has resisted pressure to do so. | Jessica
Lee/EPA
Britain is one of the few developed countries still missing from China’s
visa-free list, which now includes France, Germany, Italy, Spain, the
Netherlands, Switzerland, Australia, New Zealand, Japan, Saudi Arabia, Russia
and Sweden.
Starmer is hoping to mirror a deal struck by Canadian PM Mark Carney, whose own
China visit unlocked visa-free travel for Canadians.
The hope is that easier business travel will reduce friction and make it easier
for people to travel and explore opportunities on the ground — it would allow
visa-free travel for British citizens, giving them the ability to travel for
tourism, attend business conferences, visit friends and family, and participate
in short exchange activities.
SMOOTHING FINANCIAL FLOWS
The Financial Conduct Authority’s Chair Ashley Alder is also flying out to
Beijing, hoping to secure closer alignment between the two countries’ capital
markets. He’ll represent Britain’s financial watchdog at the inaugural U.K-China
Financial Working Group in Beijing — and bang the drum for better market
connectivity between the U.K. and China.
Expect emphasis on the cross-border investments mechanism known as the
Shanghai-London and Shenzhen-London Stock Connect, plus data sovereignty issues
associated with Chinese companies jointly listing on the London Stock Exchange,
two figures familiar with the planning said.
The Stock Connect opened up both markets to investors in 2019 which, according
to FCA Chair Ashley Alder, led to listings worth almost $6 billion.
“Technical obstacles have so far prevented us from realizing Stock Connect’s
full potential,” Alder said in a speech last year. Alder pointed to a memorandum
of understanding being drawn up between the FCA and China’s National Financial
Regulatory Administration, which he said is “critical” to allow information to
be shared quickly and for firms to be supervised across borders. But that raises
its own concerns about Chinese use of data.
“The goods wins are easier,” said a senior British business representative
briefed on the talks. “Some of the service ones are more difficult.”
TAPPING INTO CHINA’S BIOTECH BOOM
Pharma executives, including AstraZeneca’s CEO Pascal Soriot, are among those
heading to China, as Britain tries to burnish its credentials as a global life
sciences hub — and attract foreign direct investment.
China, once known mainly for generics — cheaper versions of branded medicine
that deliver the same treatment — has rapidly emerged as a pharma powerhouse.
According to ING Bank’s global healthcare lead, Stephen Farrelly, the country
has “effectively replaced Europe” as a center of innovation.
ING data shows China’s share of global innovative drug approvals jumped from
just 4 percent in 2014 to 27 percent in 2024.
Pharma executives, including AstraZeneca’s CEO Pascal Soriot, are among those
heading to China, as Britain tries to burnish its credentials as a global life
sciences hub — and attract foreign direct investment. | John G. Mabanglo/EPA
Several blockbuster drug patents are set to expire in the coming years, opening
the door for cheaper generic competitors. To refill thinning pipelines,
drugmakers are increasingly turning to biotech companies. British pharma giant
GSK signed a licensing deal with Chinese biotech firm Hengrui Pharma last July.
“Because of the increasing relevance of China, the big pharma industry and the
U.K. by definition is now looking to China as a source of those new innovative
therapies,” Farrelly said.
There are already signs of progress. Science Minister Patrick Vallance said late
last year that the U.K. and China are ready to work together in
“uncontroversial” areas, including health, after talks with his Chinese
counterpart. AstraZeneca, the University of Cambridge and Beijing municipal
parties have already signed a partnership to share expertise.
And earlier this year, the U.K. announced plans to become a “global first choice
for clinical trials.”
“The U.K. can really help China with the trust gap” when it comes to getting
drugs onto the market, said Quin Wills, CEO of Ochre, a biotech company
operating in New York, Oxford and Taiwan. “The U.K. could become a global gold
stamp for China. We could be like a regulatory bridgehead where [healthcare
regulator] MHRA, now separate from the EU since Brexit, can do its own thing and
can maybe offer a 150-day streamlined clinical approval process for China as
part of a broader agreement.”
SLASHING WHISKY TARIFFS
The U.K. has also been pushing for lowered tariffs on whisky alongside wider
agri-food market access, according to two of the industry figures familiar with
the planning cited earlier.
Talks at the end of 2024 between then-Trade Secretary Jonathan Reynolds and his
Chinese counterpart ended Covid-era restrictions on exports, reopening pork
market access.
But in February 2025 China doubled its import tariffs on brandy and whisky,
removing its provisional 5 percent tariff and applying the 10 percent
most-favored-nation rate.
“The whisky and brandy issue became China leverage,” said the senior British
business representative briefed on the talks. “I think that they’re probably
going to get rid of the tariff.”
It’s not yet clear how China would lower whisky tariffs without breaching World
Trade Organization rules, which say it would have to lower its tariffs to all
other countries too.
INDUSTRIAL TENSIONS
The trip comes as the U.K. faces growing international pressure to take a
tougher line on Chinese industrial overproduction, particularly of steel and
electric cars.
But in February 2025 China doubled its import tariffs on brandy and whisky,
removing its provisional 5 percent tariff and applying the 10 percent
most-favored-nation rate. | Yonhap/EPA
But while the U.K.’s allies in the European Union and the U.S. have imposed
tariffs on Chinese EVs, the U.K. has resisted pressure to do so.
There’s a deal “in the works” between Chinese EV maker and Jaguar Land Rover,
said the senior British business representative briefed on the talks quoted
higher, where the two are “looking for a big investment announcement. But
nothing has been agreed.” The deal would see the Chinese EV maker use JLR’s
factory in the U.K. to build cars in Britain, the FT reported last week.
“Chinese companies are increasingly focused on localising their operations,”
said another business representative familiar with the talks, noting Chinese EV
makers are “realising that just flaunting their products overseas won’t be a
sustainable long term model.”
It’s unlikely Starmer will land a deal on heavy energy infrastructure, including
wind turbine technology, that could leave Britain vulnerable to China. The U.K.
has still not decided whether to let Ming Yang, a Chinese firm, invest £1.5
billion in a wind farm off the coast of Scotland.
“In Brussels, no one hears you scream” — spin doctor Kasper Juul in the Danish
political TV drama “Borgen.”
For some politicians, Brussels is where you are sent when you are problematic or
no longer needed back home.
For others, there’s the chance to get a prestigious position that goes beyond
rank or experience.
At the same time, bureaucrats with little or no media experience appear before
the cameras every weekday as European Commission spokespeople, while career
diplomats find themselves handling dossiers with major consequences for domestic
politics.
All these people are united by a belief, to some degree, in the EU project. But
working in Brussels can turn into a nightmare (despite the visibility, high
salary, and other perks).
Here’s who we think have the five hardest jobs in Brussels, and why:
MARK RUTTE, NATO SECRETARY-GENERAL
He may have been given the nickname “Teflon” by officials in the Netherlands and
NATO — because nothing sticks to him — but with Donald Trump in the White House,
Rutte’s job is surely the toughest in Brussels.
His role at present is seemingly less about running the military alliance and
more about trying to stop one man — Trump — from dismantling the entire thing.
And the former Dutch prime minister is having some success in his role as Trump
whisperer. Not long after he used his speech in Davos last week to double down
on wanting Greenland, the U.S. president met with Rutte and surprisingly
announced that they had “formed the framework of a future deal.”
However, it does put Rutte in some awkward situations. Last March, when Rutte
and Trump met in the Oval Office, the U.S. president said he wanted to annex
Greenland, to which the Dutchman could only reply “I don’t want to drag NATO”
into it, which angered the Danes. No provision in the alliance’s 1949 founding
treaty envisions one NATO ally attacking another, and Danish Prime Minister
Mette Frederiksen and others warned that an invasion would mean the end of the
alliance. Rutte earlier this month said NATO is “not at all” in crisis.
Rutte also raised eyebrows when he called Trump “daddy” — a comment he tried to
row back on.
Rutte’s office didn’t respond to a request for a comment for this article.
“I perfectly understand how difficult is his job [to keep NATO unity], but it’s
such a pain to watch him,” said a senior EU diplomat, granted anonymity to speak
freely, as were others in this article.
Mark Rutte raised eyebrows when he called Donald Trump “daddy” — a comment he
tried to row back on. | Mandel Ngan/AFP via Getty Images
“Walking on a tightrope in a headwind is easier than NATO Secretary-General Mark
Rutte’s job,” said Nicolás Pascual de la Parte, former Spanish NATO ambassador
and now a member of the European Parliament’s Security and Defense Committee for
the European People’s Party. “Keeping the Atlantic alliance united under present
circumstances requires unparalleled statesmanship to temper down Trump’s
relentless brinkmanship.”
PAULA PINHO, COMMISSION CHIEF SPOKESPERSON
In the von der Leyen era, the job of chief spokesperson has become a very tough
gig. Officials say that the Commission president works in a (metaphorical)
bunker, with only her head of cabinet, Björn Seibert, in the loop while everyone
else is either left in the dark or informed only on a strictly need-to-know
basis — very different from the more collegial style of her predecessor,
Jean-Claude Juncker.
That makes the job of Portuguese official Paula Pinho, appointed Commission
chief spokesperson in November 2024 and a lawyer by training, one of the most
difficult in Brussels as she has to face questions from journalists in front of
the cameras every working day. But often Pinho — a German speaker close to
Michael Hager, considered a Seibert ally and who is head of Cabinet for Valdis
Dombrovskis — cannot respond either because she’s not allowed to or because
she’s not been given the answer, officials and diplomats say.
It’s made the Commission more closed off than ever. Last January, when Ursula
von der Leyen was hospitalized with pneumonia, it was the German news agency DPA
that broke the news. The following month, even the famously non-transparent
Vatican didn’t hide the fact that Pope Francis had been taken to hospital.
When Pinho’s predecessor, Eric Mamer, moved on, there were jokes among officials
about how many bottles of champagne he opened to celebrate that he was finally
free. At least Mamer’s sacrifice was rewarded: when he left, he got the position
of director general in the environment department.
Pinho told POLITICO: “I am honoured to have what is among the unique jobs in
Brussels. Certainly not measured in comfort or easiness of the tasks, but in
responsibility and sobriety.”
She said part of the job “is to differentiate what the public needs to know and
what some media would just love to know.”
KAJA KALLAS, EU FOREIGN POLICY CHIEF
The European External Action Service, the bloc’s diplomatic body, was created in
2010 and the job of the top diplomat who leads it has always been a difficult
one as member countries, especially the big ones, want to keep foreign policy in
their own hands.
Relations between von der Leyen and the former holder of the role, Josep
Borrell, were very bad, according to officials. It’s even worse with Kallas.
The Mediterranean area has been taken away from Kallas as the Commission last
year created the Directorate-General for the Middle East, North Africa and the
Gulf (DG MENA). At the same time, the Commission has been actively working on
plans to cut down the size of the EEAS.
In an attempt to fight back, Kallas tried to appoint a powerful deputy secretary
general in the form of Martin Selmayr, Juncker’s feared former chief of staff,
but the move was blocked by von der Leyen’s office.
Kallas “privately complains that she [von der Leyen] is a dictator but there’s
little or nothing she can do about that,” said one senior official. Kallas also
comes from tiny Estonia, and her party, the liberals, is small, making her
position even weaker than Borrell’s (a socialist from Spain).
Kallas’ office did not reply to a request for a comment.
BÁLINT ÓDOR, HUNGARIAN AMBASSADOR
Hungarian Prime Minister Viktor Orbán likes to play the villain with his
pro-Russia and pro-Trump lines, which makes the job of the country’s EU
ambassador difficult. The current ambassador, Bálint Ódor, is seen as close to
Orbán’s Fidesz party, unlike his predecessor, Tibor Stelbaczky, who now works
for the EU’s diplomatic body.
Bálint Ódor is seen as close to Viktor Orbán’s Fidesz party. | Thierry
Monasse/Getty Images
When Hungarian ambassadors try to soften some of the harsh lines coming from the
government, it creates suspicions in Budapest about their loyalty, said a
Hungarian diplomat. One official described the Hungarian ambassador as the
“elephant in the room,” because of the country’s close ties with the Kremlin.
During the Hungarian presidency of the Council of the EU last year, some
diplomats raised concerns about sharing certain information with the Hungarians
because of Orbán’ s proximity to Russia (Hungary’s Foreign Minister Péter
Szijjártó holds regular meetings with his Russian counterpart Sergey Lavrov, who
is under EU sanctions). Ódor told POLITICO: “It’s a privilege to serve my
country and represent Hungarian interests.”
MAROŠ ŠEFČOVIČ, TRADE COMMISSIONER
When a dossier is hard to crack, send for the Moscow-educated Slovak
commissioner, nicknamed Mr. Fix It.
The former member of the Slovak Communist Party has been a commissioner since
October 2009, making him the longest-serving current commissioner, having served
under José Manuel Barroso as well as Juncker and von der Leyen.
Šefčovič has been called upon to oversee the EU’s response to extraordinary (and
complicated) challenges like Brexit and the European Green Deal, and now, in the
age of Trump, he is in charge of trade. He does more than that, though. For
instance, when von der Leyen didn’t want to go to the European Parliament in
Strasbourg for a debate on whether to remove her (and therefore him) from
office, she sent Šefčovič instead.
Šefčovič’s office didn’t respond to a request for comment.
BRUSSELS — Only a few days ago, EU diplomats and officials were whispering
furtively about the idea they might one day need to think about how to push back
against Donald Trump. They’re not whispering anymore.
Trump’s attempt, as EU leaders saw it, to “blackmail” them with the threat of
tariffs into letting him take the sovereign Danish island of Greenland provoked
a howl of outrage — and changed the world.
Previous emergency summits in Brussels focused on existential risks to the
European Union, like the eurozone crisis, Brexit, the coronavirus pandemic, and
Russia’s invasion of Ukraine. This week, the EU’s 27 leaders cleared their
diaries to discuss the assault they faced from America.
There can be little doubt that the transatlantic alliance has now been
fundamentally transformed from a solid foundation for international law and
order into a far looser arrangement in which neither side can be sure of the
other.
“Trust was always the foundation for our relations with the United States,” said
Polish Prime Minister Donald Tusk as he arrived for the summit in Brussels on
Thursday night. “We respected and accepted American leadership. But what we need
today in our politics is trust and respect among all partners here, not
domination and for sure not coercion. It doesn’t work in our world.”
The catalyst for the rupture in transatlantic relations was the U.S. president’s
announcement on Saturday that he would hit eight European countries with tariffs
of 10 percent for opposing his demand to annex Greenland.
That was just the start. In an avalanche of pressure, he then canceled his
support for the U.K. premier’s decision to hand over the Chagos Islands, home to
an important air base, to Mauritius; threatened France with tariffs on Champagne
after Macron snubbed his Board of Peace initiative; slapped down the Norwegian
prime minister over a Nobel Peace Prize; and ultimately dropped his threats both
to take Greenland by military force and to hit countries that oppose him with
tariffs.
Here was a leader, it seemed to many watching EU officials, so wild and
unpredictable that he couldn’t even remain true to his own words.
But what dismayed the professional political class in Brussels and beyond was
more mundane: Trump’s decision to leak the private text messages he’d received
directly from other world leaders by publishing them to his 11.6 million
followers on social media.
Trump’s screenshots of his phone revealed French President Emmanuel Macron
offering to host a G7 meeting in Paris, and to invite the Russians in the
sidelines. NATO Secretary-General Mark Rutte, who once called Trump “daddy,”
also found his private text to Trump made public, in which he praised the
president’s “incredible” achievements, adding: “Can’t wait to see you.”
Leaking private messages “is not acceptable — you just don’t do it,” said one
senior diplomat, like others, on condition of anonymity because the matter is
sensitive. “It’s so important. After this, no one can trust him. If you were any
leader you wouldn’t tell him anything. And this is a crucial means of
communication because it is quick and direct. Now everything will go through
layers of bureaucracy.”
Mark Carney had been one of the classic Davos set and was a regular attendee:
suave, a little smug, and seeming entirely comfortable among snow-covered peaks
and even loftier clientele. | Gian Ehrenzeller/EPA
The value of direct contact through phone texts is well known to the leaders of
Europe, who, as POLITICO revealed, have even set up their own private group chat
to discuss how to respond when Trump does something inflammatory. Such messages
enable ministers and officials at all levels to coordinate solutions before
public statements have to be made, the same senior diplomat said. “If you don’t
have trust, you can’t work together anymore.”
NO MORE NATO
Diplomats and officials now fear the breakdown in personal trust between
European leaders and Trump has potentially grave ramifications.
Take NATO. The military alliance is, at its core, a promise: that member
countries will back each other up and rally to their defense if one of them
comes under attack. Once that promise looks less than solid, the power of NATO
to deter attacks is severely undermined. That’s why Denmark’s Prime Minister
Mette Frederiksen warned that if Trump invaded the sovereign Danish territory of
Greenland it would be the end of NATO.
The fact he threatened to do so has already put the alliance into intensive
care, another diplomat said.
Asked directly if she could still trust the U.S. as she arrived at the Brussels
summit, Frederiksen declined to say yes. “We have been working very closely with
the United States for many years,” she replied. “But we have to work together
respectfully, without threatening each other.”
European leaders now face two tasks: To bring the focus back to the short-term
priorities of peace in Ukraine and resolving tensions over Greenland; and then
to turn their attention to mapping out a strategy for navigating a very
different world. The question of trust, again, underpins both.
When it comes to Ukraine, European leaders like Macron, Germany’s Friedrich Merz
and the U.K.’s Keir Starmer have spent endless hours trying to persuade Trump
and his team that providing Kyiv with an American military element underpinning
security guarantees is the only way to deter Russian President Vladimir Putin
from attacking again in future.
Given how unreliable Trump has been as an ally to Europe, officials are now
privately asking what those guarantees are really worth. Why would Russia take
America’s word seriously? Why not, in a year or two, test it to make sure?
THE POST-DAVOS WORLD
Then there’s the realignment of the entire international system.
There was something ironic about the setting for Trump’s assaults on the
established world order, and about the identities of those who found themselves
the harbingers of its end.
Among the snow-covered slopes of the Swiss resort of Davos, the world’s business
and political elite gather each year to polish their networks, promote their
products, brag about their successes, and party hard. The super rich, and the
occasional president, generally arrive by helicopter.
As a central bank governor, Mark Carney had been one of the classic Davos set
and was a regular attendee: suave, a little smug, and seeming entirely
comfortable among snow-covered peaks and even loftier clientele.
Now prime minister of Canada, this sage of the centrist liberal orthodoxy had a
shocking insight to share with his tribe: “Today,” Carney began this week, “I’ll
talk about the rupture in the world order, the end of a nice story, and the
beginning of a brutal reality where geopolitics among the great powers is not
subject to any constraints.”
“The rules-based order is fading,” he intoned, to be replaced by a world of
“great power rivalry” in which “the strong do what they can, and the weak suffer
what they must.”
“The old order is not coming back. We should not mourn it. Nostalgia is not a
strategy.”
Carney impressed those European officials watching. He even quoted Finnish
President Alexander Stubb, who has enjoyed outsized influence in recent months
due to the connections he forged with Trump on the golf course.
NATO Secretary-General Mark Rutte, who once called Donald Trump “daddy,” also
found his private text to Donald Trump made public, in which he praised the
president’s “incredible” achievements, adding: “Can’t wait to see you.” | Jim
lo Scalzo/EPA
Ultimately, Carney had a message for what he termed “middle powers” — countries
like Canada. They could, he argued, retreat into isolation, building up their
defenses against a hard and lawless world. Or they could build something
“better, stronger and more just” by working together, and diversifying their
alliances. Canada, another target of Trump’s territorial ambitions, has just
signed a major partnership agreement with China.
As they prepared for the summit in Brussels, European diplomats and officials
contemplated the same questions. One official framed the new reality as the
“post-Davos” world. “Now that the trust has gone, it’s not coming back,” another
diplomat said. “I feel the world has changed fundamentally.”
A GOOD CRISIS
It will be up to European Commission President Ursula von der Leyen and her team
to devise ways to push the continent toward greater self-sufficiency, a state
that Macron has called “strategic autonomy,” the diplomat said. This should
cover energy, where the EU has now become reliant on imports of American gas.
The most urgent task is to reimagine a future for European defense that does not
rely on NATO, the diplomat said. Already, there are many ideas in the air. These
include a European Security Council, which would have the nuclear-armed non-EU
U.K. as a member. Urgent efforts will be needed to create a drone industry and
to boost air defenses.
The European Commission has already proposed a 100,000-strong standing EU army,
so why not an elite special forces division as well? The Commission’s officials
are world experts at designing common standards for manufacturing, which leaves
them well suited to the task of integrating the patchwork of weapons systems
used by EU countries, the same diplomat said.
Yet there is also a risk. Some officials fear that with Trump’s having backed
down and a solution to the Greenland crisis now apparently much closer, EU
leaders will lose the focus and clarity about the need for change they gained
this past week. In a phrase often attributed to Churchill, the risk is that EU
countries will “let a good crisis go to waste.”
Domestic political considerations will inevitably make it harder for national
governments to commit funding to shared EU defense projects. As hard-right
populism grows in major regional economies, like France, the U.K. and Germany,
making the case for “more Europe” is harder than ever for the likes of Macron,
Starmer and Merz. Even if NATO is in trouble, selling a European army will be
tough.
While these leaders know they can no longer trust Trump’s America with Europe’s
security, many of them lack the trust of their own voters to do what might be
required instead.
LONDON — British businesses that have plowed millions into border control
facilities are demanding compensation from the U.K. government over its Brexit
“reset” deal with the European Union.
Since the U.K. left the bloc, dozens of firms importing plants and fresh produce
from the continent have invested in purpose-built inspection facilities, known
as “control points,” in an attempt to reduce the border friction and costs
associated with EU trade.
By developing in-house facilities, businesses had hoped to bypass the expense
and disruption that had plagued larger border control posts, like the
government’s Sevington site in Kent.
But as the U.K. and EU negotiate a sanitary and phytosanitary (SPS) deal — which
is expected to remove the need for most border checks on food imported from the
bloc — business owners now fear these facilities will be rendered redundant.
Nigel Jenney, CEO of the Fresh Produce Consortium, said several members had
spent “anything from a few hundred thousand to several millions” on control
points to accommodate checks on imports of fresh fruit and vegetables and cut
flowers.
“In good faith, the industry proactively responded to the requests of
government; and now it’s been hung out to dry, costing modest family businesses
huge amounts of money,” Jenney added.
‘BITTERSWEET’ DEAL
Provender Nurseries, a wholesaler of plants and plant products that imports 80
percent of its stock from the EU, is one of many firms in this predicament. In
2024, it splashed out around £250,000 to convert a large general-purpose barn
into a control point, the culmination of three years of paperwork.
Speaking to POLITICO on site in Swanley, Kent, where workers were busy unloading
a shipment of trees from Italy ready for inspection, Provender’s site operations
manager Stuart Tickner said the prospect of an SPS deal was “bittersweet” for
the business.
“I fully support and back up the SPS agreement,” Tickner said, pointing out that
it would decrease border friction with the EU. “But at the same time, we’ve
spent a lot of time, money and effort to achieve it [the control point]. So it’s
gutting that it’s got to go.”
Investment in the control point has also restricted the business’s ability to
grow, he claims.
“We’ve pumped so much money into it [the control point] that the directors are
reluctant to invest in more at the moment,” Tickner added.
Provender Nurseries, a wholesaler of plants and plant products that imports 80
percent of its stock from the EU, is one of many firms in this predicament. |
Photo by Provender Nurseries
A U.K. government spokesperson said: “We are focused on delivering a food and
drink deal that could add up to £5.1 billion a year to our economy, supporting
British producers and businesses, backing British jobs, and putting more money
in people’s pockets.”
“With negotiations ongoing, our aim is to reduce regulatory barriers, slash
costs, and cut red tape for businesses, while maintaining the UK’s high
biosecurity standards.”
CALLS FOR COMPENSATION
Shortly after the U.K. and EU announced plans for an SPS deal last May, Tickner
and two other horticultural businesses wrote to former Farming Minister Daniel
Zeichner asking for a meeting on the issue of compensation for control points.
In their letter, shared with POLITICO, the businesses warned of “significant
knock-on effects” for businesses like theirs that have invested in control
points.
“This process involved not only major capital expenditure, but also serious
operational impacts, including staffing adjustments, the implementation of
import software and compliance systems, and long-term contractual commitments,”
they said.
“Importantly, the building of these control points also caused substantial
disruption to our day-to-day operations,” they added. “Many of us had to
redesign or repurpose areas of our business premises, manage construction
activity around ongoing operations, and absorb the associated delays and
interruptions to normal business.”
Neither Zeichner nor his successor, Angela Eagle, responded to the letter or
follow-up messages sent by Tickner.
These are just the latest calls for compensation for potentially redundant
Brexit border facilities. Last year, POLITICO reported that the British taxpayer
had spent more than £700 million on border control posts, which may no longer be
needed once the SPS deal comes into effect.
That’s not counting the £120 million that British ports themselves splashed out
on specialist facilities. Ports are also demanding compensation from the
government.
While Tickner and his colleagues have managed to make good use of their control
point since the introduction of checks on imported plants from the EU in April
2024, other businesses with control points have been less fortunate.
In June last year, the government announced that it would scrap checks on fruit
and vegetables in anticipation of the SPS deal, meaning many of these facilities
are underused. More recently, the government announced that it would reduce
inspection rates for four popular varieties of cut flowers imported from the EU.
“The government is constantly changing its mind. I’ve lost count of the amount
of U-turns,” Fresh Produce Consortium CEO Jenney said, the exasperation clear in
his voice.
Speaking to POLITICO on site in Swanley, Kent, where workers were busy unloading
a shipment of trees from Italy ready for inspection, Provender’s site operations
manager Stuart Tickner said the prospect of an SPS deal was “bittersweet” for
the business. | Photo by Provender Nurserie
“We have secured confirmation of a low-risk position for fruit and vegetables
and most cut flowers from Europe. But that’s after the industry has spent a
small fortune doing what the government wanted us to do. There is now no
likelihood of future income because the reset would appear to remove that
requirement.”
PILOT SCHEME SCRAPPED
To make matters more difficult for these businesses, the Department for
Environment, Food and Rural Affairs last year cancelled the rollout of an
“Authorised Operator Scheme,” which would have allowed businesses to carry out
their own checks on imports, following a pilot.
Firms running control points must instead rely on government inspectors to check
imports, who only work certain hours of the week, defeating a key purpose of
control points.
“Government gave businesses a clear message and advice that for those importing
perishable and sensitive goods at scale, investing in control points to then
have the chance to achieve Authorised Operator Status was the best option to
control your supply chains and give critical certainty,” said Jennifer Pheasey,
director of policy and public affairs at the Horticultural Trades Association.
By canning the Authorised Operator Scheme scheme and agreeing to an SPS deal,
control points “cannot deliver real returns and will be underutilized,” she
added.
HTA is now joining calls for government support for businesses that have
invested in control points to help them mitigate and repurpose.
Like plant importers, Jenney would also like to see his members compensated for
their investment in control points.
“We’d love to see businesses compensated for the losses they’ve incurred through
no fault of their own — but we also accept that the government might find that
difficult. What there does need to be is a genuine awareness of the cost burden
that they’ve placed on industry and to make sure it never, ever happens again.”
WHEN POLITICIANS SAY THE QUIET PART OUT LOUD
As Kaja Kallas’ unguarded comments showed, wisecracks and slips of the tongue
often reveal far more than a carefully crafted speech.
By GABRIEL GAVIN
Illustration by Natália Delgado/POLITICO
When Hungary’s Viktor Orbán arrived at an EU summit in 2015, Jean-Claude Juncker
said “the dictator is coming” and greeted him with a playful slap to the face.
The then-European Commission president’s jab was a revealing glimpse into a
political dynamic usually kept behind closed doors, or even just in leaders’
heads. Whether gaffe or veiled signal, the stunt sparked discussions about
Hungary’s democratic backsliding.
When everything they say is scrutinized and every statement twisted by political
opponents, politicians have learned the need to keep quiet, to polish their
communications and stay diplomatic. But under extraordinary pressure, in private
or as a joke, the mask slips — betraying more than carefully worded speeches
ever will.
On Wednesday, EU top diplomat Kaja Kallas summed up what many were thinking when
she quipped privately that the state of the world makes it a “good moment” to
start drinking. She might not have intended it as a serious assessment, but it
offered a telling insight: Europe’s representative on the global stage thinks
things are looking pretty dire.
Some asides distill political truths that stand the test of time. Juncker’s
declaration that European leaders “all know what to do, but we don’t know how
to get re-elected once we’ve done it” came to be known as the “Juncker curse,”
shorthand for the electoral challenges faced by reformist governments.
“Advisers and communications people often try to stage-manage everything a
politician says. But leaders are human and sometimes they just say what they’re
thinking — either in jest or as the pressure of the job gets to them,” said
Louis Rynsard, a former political adviser in the U.K. House of Commons and
co-founder of Milton Advisers. “The instinctive reaction is ‘oh, dear God, what
just happened,’ but nine times out of 10 political leaders being human works
better than all the beautiful crafted PR lines ever could. For the one out of
10, you just have to hope no one was listening.”
Belgian Prime Minister Bart De Wever is welcomed by French President Emmanuel
Macron in Paris early this month. De Wever, hailed as Europe’s funniest leaders,
likes to use “dark humor” to get his point across. | Teresa Suarez/EPA
For those living in a world of secrets, what they laugh about can reveal their
attitudes to things they can’t openly discuss.
“There’s only so much politicians can carry around with them and you get this
sort of leakage of ideas, things that have been half thought-through,” said
Ashley Weinberg, senior lecturer at the University of Salford and author of The
Psychology of Politicians.
Britain’s royal family is famously measured in its communications. Yet King
Charles was uncharacteristically frank when he welcomed his first prime
minister, Liz Truss, to a weekly audience at Buckingham Palace in 2022, just as
her proposed budget threw the markets into turmoil. “Back again? Dear, oh dear,”
he smiled. Truss resigned 12 days later.
According to political psychologist Ramzi Abou Ismail, those kinds of wisecracks
can be “a way to pass on messages in a soft way, sort of saying ‘oh I don’t
really mean it — unless you agree.'”
Diplomats who have been in high-stakes international negotiations told POLITICO
they’re often more jovial than people realize, an antidote to the anxiety that
comes with high politics.
“People would be surprised how often jokes get cracked in tense diplomatic
situations and the whole room relaxes a bit and realizes they’re dealing with a
human being,” said Chris Fitzgerald, a former British diplomat posted to
Brussels during the Brexit negotiations. “The best lines are often those that
are unscripted, and even better if they show you understand the culture of your
interlocutor.”
Belgian Prime Minister Bart De Wever, often hailed as the continent’s funniest
leader, said after a European Council that he likes a well-timed quip using
“dark humor” to get his point across. Former Lithuanian Foreign Minister
Gabrielius Landsbergis, who earned a reputation for landing political zingers,
said absurd political situations just call for laughter. “When you see what is
happening in the world, just being serious about it doesn’t feel like it’s
enough any more, you feel like the best way to engage with it is to show the
absurdity,” he said.
But “it’s not always a polished strategy,” said one EU diplomat, who has
attended hundreds of sit-downs with counterparts in Brussels. “These meetings
are often long and boring and you see an opportunity to make people laugh.
Sometimes it lands and makes you look human, other times it backfires and causes
problems.”
That’s a balancing act U.S. President Donald Trump’s nominee for ambassador to
Iceland flubbed last week, sparking a diplomatic crisis by joking his new host
country would become a U.S. state at a time when the White House has been piling
on pressure to seize Greenland.
Ismail, the political psychologist, credits Trump with having stretched the
boundaries of political norms so far that otherwise austere figures in Europe
and elsewhere feel freer to speak frankly. “Trump didn’t just change the norms
when it comes to political communication, the guy collapsed the boundaries
between what is considered private cognition and public speech,” he said.
European politicians are also realizing the value of being less polished. One EU
official said the bloc’s institutions “have a notorious humor deficit,” which is
an increasing disadvantage when it comes to getting Europe’s message out “in the
era of the social media-effective Trumpian soundbite” and of a public that
values plain speech.
The jocular approach has been championed by Olof Gill, the European Commission’s
deputy chief spokesperson, who uses daily televised podium appearances to crack
jokes and take swipes at rivals and reporters alike.
“The value of the Commission’s midday press briefing as a live piece of
political theater is substantial, and within that theater, humor can be a very
useful device to take the sting out of a difficult question or highlight the
absurdity of a political viewpoint,” he said.
For his part, Orbán seemed to recognize the nature of the game when branded a
dictator by Juncker. “Hungarians talk straight about tough things,” he said. “We
don’t like to beat about the bush. We are a frank people.”
These moments will only happen more frequently at a time when the established
global order is collapsing — and leaders can often do little but laugh, Ismail
said.
“There’s also a sort of psychological adaptation to permanent crises in politics
of the kind we’ve had for the past five years,” he said. “Leaders will be
feeling crisis fatigue and this gives room for some humor, some irony, because
it sort of breaks the pattern.”
“Think of it as a valve, and then the humor just sort of releases the pressure.”
Mari Eccles contributed reporting.
LONDON — U.S. President Donald Trump’s trade negotiators are pushing for the
U.K. to adopt American standards in a move that would derail Britain’s
post-Brexit relationship with the European Union, two people familiar with the
talks have told POLITICO.
The U.S. is also pushing hard for the recognition of American accreditation
bodies in the U.K., three other people with knowledge of the demands confirmed.
The joint moves would have knock-on effects for safety-critical sectors like
food, forensics, manufacturing and NHS testing, experts fear.
“It’s this invisible infrastructure that no one really knows about but which
keeps everyone safe — and that’s now under threat,” a person briefed on the
talks told POLITICO. They, like others cited in this piece, were granted
anonymity to speak freely.
American negotiators have turned up the heat in trade talks with the recent
suspension of the Technology Prosperity Deal, amid frustration over the pace of
wider negotiations. U.K. negotiating asks on steel and Scotch whisky tariffs
have also gone unanswered.
Trump threatened a fresh wedge in the relationship over the weekend, vowing to
impose tariffs on Britain and other European allies pushing back at his desire
for the United States to own Greenland.
The standards push comes as the Trump administration hollows out American
watchdogs, with sweeping cuts to the Food and Drug Administration and the
dismantling of the Consumer Product Safety Commission.
While food standards remain a red line for the U.K. government, some figures
familiar with the talks fear the U.K. could cave in on other U.S. demands.
“My concern is that these red lines that have been red lines from the outset and
for years are under increasing threat of being breached,” the person cited above
said.
British negotiators have so far refused to back down, but U.S. negotiators “keep
circling back” on these issues, another person who was briefed on the talks by
both governments said.
Peter Holmes, an expert on standards from the UK Trade Policy Observatory at the
University of Sussex, warned that accepting U.S. demands could lead to a “race
to the bottom” with the U.K. regarded as a “wild west market” internationally.
A U.K. government spokesperson said: “Our historic agreement with the U.S. has
already delivered for the pharma, aerospace and auto sectors, while our deal
with the EU will see the removal of trade barriers including SPS, saving
hundreds of millions on U.K. exports.”
“We have and always will be clear that we will uphold our high food, animal
welfare and environmental standards in trade deals, and negotiations will
continue with both the EU and U.S. on strengthening our trading relationship,”
the spokesperson added.
The U.K. says it will uphold its high food, animal welfare and environmental
standards in trade deals. | Geography Photos/Universal Images Group via Getty
Images
A spokesperson for the United States Trade Representative said the claims came
from “anonymous and irrelevant sources” with “no insight into the trade
discussions between the U.S. and U.K.” The spokesperson did not contest any
specific aspects of this report.
They added that the two nations had successfully implemented “numerous aspects
of the U.S.-U.K. EPD,” including “mutually expanding access of U.S. and U.K.
beef in each other’s markets.”
“The U.S. and U.K. continue to work together constructively on finalizing
remaining aspects of the EPD, including the U.K. commitment to ‘improve market
access for agricultural products’ from the United States,” the spokesperson
said.
IMPACT ON BREXIT RESET TALKS
Giving in to the U.S. demands would upset Britain’s ability to trade more
closely with the EU as part of ongoing Brexit “reset” negotiations with the bloc
that include alignment on food standards and carbon emissions in manufacturing.
The U.K. government has “very clear red lines around all of this because they
are going to do certain things with the EU,” the second person quoted above
explained.
“You would have thought these matters had already been well ventilated and
resolved,” the person added, explaining that in talks the U.S. side “keep saying
‘why can’t you do more food standards? Why aren’t you coming closer on our side
of it? Are you really sure what you’re doing with the EU is the right thing to
do?’”
Negotiations with the U.S. are “pretty much [in] stasis at the moment,” the same
person continued. As London’s Brexit reset talks with the EU progress this year,
“the possibility to have the kinds of changes that the U.S. is putting forward
become much diminished when those agreements with the EU start to get over the
line.”
RECOGNITION OF ACCREDITATION BODIES
Multiple people briefed on the trade talks claim the U.S. proposals go beyond
the terms of the original U.K.-U.S. Economic Prosperity Deal agreed last May
between U.S. President Donald Trump and Britain’s Prime Minister Keir Starmer.
In addition to headline commitments to cut tariffs on cars, steel and
pharmaceuticals, the wide-ranging deal included a promise to address “non-tariff
barriers,” including a pledge to treat conformity assessment bodies — such as
testing labs and certification groups from the other nation — in a way that is
“no less favorable” than the treatment of its own.
This is an increasingly common commitment in U.K. trade deals and typically
means that accreditation bodies would have the power to accredit a whole range
of certification and testing providers from the other country.
However, U.S. negotiators are now pushing for the recognition of disparate
American accreditation bodies, which would give them the authority to approve
certification, testing and verification organizations in the U.K., three people
briefed on the talks confirmed.
Accepting this demand would mean that the U.K.’s national accreditation body,
UKAS, would no longer meet the basic requirements of membership in the European
Co-operation for Accreditation, under which national accreditation bodies
recognize each other’s accreditations.
U.K. Prime Minister Keir Starmer says he wanted the U.K. to seek “even closer
alignment” with the EU. | Leon Neal/Getty Images
This would put the proposed U.K.-EU agrifood deal and plans to link U.K. and EU
Emissions Trading Schemes “at massive risk,” should those deals require the EU
to recognize U.K. emissions verification bodies and food control laboratories,
the first person cited above explained.
An industry figure familiar with the ETS linkage talks said an acceptance of the
changes would amount to a “watering down” of the entire carbon pricing system,
adding that “every single company falling under UK ETS” would be “absolutely
furious.”
It could also jeopardize any future alignment with the EU in other areas such as
manufactured goods, a second industry figure briefed on the negotiations said.
The U.K. government has indicated a willingness to go even further in its
relationship with the EU, with U.K. Prime Minister Keir Starmer saying he wanted
the U.K. to seek “even closer alignment” with the single market.
Beyond plans outlined in the Common Understanding last May, “there are other
areas where we should consider if it’s in our interests to … align with the
single market,” he told the BBC in a recent interview. “Now that needs to be
considered on an issue-by-issue, sector-by-sector basis, but we’ve already done
it with food and agriculture, and that will be implemented this year.”
‘RACE TO THE BOTTOM’
The U.S. operates a decentralized standards system in which accreditation is
carried out by a competitive network of organizations, most of which are
commercial. This is in direct contrast to the U.K.’s current model of
accreditation, whereby a single, non-profit accreditation body, UKAS, oversees
certification and product testing in the public interest.
The UK Trade Policy Observatory’s Peter Holmes warned that adopting the U.S.
system could lead to a “race to the bottom”, with UKAS pitted against American
accreditation bodies. “They might have to cut corners and give up their
legally-required public service obligations,” he said.
Accepting U.S. accreditation bodies would make the U.K. a “wild west market
where you can’t trust anything that’s on sale in the U.K.,” he added.
The U.K. government has repeatedly rejected the possibility of changes to
British standards, including the possibility of accepting American
chlorine-washed chicken and hormone-treated beef.
“We will not compromise on food standards,” Trade Minister Chris Bryant said in
an interview with CNBC this month. “That is the beginning and end of everything
I have to say on that subject. Food standards are really important. There is no
compromise for us to strike there.”
LONDON — If there’s one thing Keir Starmer has mastered in office, it’s changing
his mind.
The PM has been pushed by his backbenchers toward a flurry of about-turns since
entering Downing Street just 18 months ago.
Starmer’s vast parliamentary majority hasn’t stopped him feeling the pressure —
and has meant mischievous MPs are less worried their antics will topple the
government.
POLITICO recaps 7 occasions MPs mounted objections to the government’s agenda —
and forced the PM into a spin. Expect this list to get a few more updates…
PUB BUSINESS RATES
Getting on the wrong side of your local watering hole is never a good idea. Many
Labour MPs realized that the hard way.
Chancellor Rachel Reeves used her budget last year to slash a pandemic-era
discount on business rates — taxes levied on firms — from 75 percent to 40
percent.
Cue uproar from publicans.
Labour MPs were barred from numerous boozers in protest at a sharp bill increase
afflicting an already struggling hospitality sector.
A £300 million lifeline for pubs, watering down some of the changes, is now
being prepped. At least Treasury officials should now have a few more places to
drown their sorrows.
Time to U-turn: 43 days (Nov. 26, 2025 — Jan. 8, 2026).
FARMERS’ INHERITANCE TAX
Part of Labour’s electoral success came from winning dozens of rural
constituencies. But Britain’s farmers soon fell out of love with the
government.
Reeves’ first budget slapped inheritance tax on farming estates worth more than
£1 million from April 2026.
Farmers drive tractors near Westminster ahead of a protest against inheritance
tax rules on Nov. 19, 2024. | Ben Stansall/AFP via Getty Images
Aimed at closing loopholes wealthy individuals use to avoid coughing up to the
exchequer, the decision generated uproar from opposition parties (calling the
measure the “family farm tax”) and farmers themselves, who drove tractors around
Westminster playing “Baby Shark.”
Campaigners including TV presenter and newfound farmer Jeremy Clarkson joined
the fight by highlighting that many farmers are asset rich but cash poor — so
can’t fund increased inheritance taxes without flogging off their estates
altogether.
A mounting rebellion by rural Labour MPs (including Cumbria’s Markus
Campbell-Savours, who lost the whip for voting against the budget resolution on
inheritance tax) saw the government sneak out a threshold hike to £2.5 million
just two days before Christmas, lowering the number of affected estates from 375
to 185. Why ever could that have been?
Time to U-turn: 419 days (Oct. 30, 2024 — Dec. 23, 2025).
WINTER FUEL PAYMENTS
Labour’s election honeymoon ended abruptly just three and a half weeks into
power after Reeves made an economic move no chancellor before her dared to
take.
Reeves significantly tightened eligibility for winter fuel payments, a
previously universal benefit helping the older generation with heating costs in
the colder months.
Given pensioners are the cohort most likely to vote, the policy was seen as a
big electoral gamble. It wasn’t previewed in Labour’s manifesto and made many
newly elected MPs angsty.
After a battering in the subsequent local elections, the government swiftly
confirmed all pensioners earning up to £35,000 would now be eligible for the
cash. That’s one way of trying to bag the grey vote.
Time until U-turn: 315 days (July 29, 2024 — June 9, 2025).
WELFARE REFORM
Labour wanted to rein in Britain’s spiraling welfare bill, which never fully
recovered from the Covid-19 pandemic.
The government vowed to save around £5 billion by tightening eligibility for
Personal Independence Payment (PIP), a benefit helping people in and out of work
with long term health issues. It also said other health related benefits would
be cut.
However, Labour MPs worried about the impact on the most vulnerable (and
nervously eyeing their inboxes) weren’t impressed. More than 100 signed an
amendment that would have torpedoed the proposed reforms.
The government vowed to save around £5 billion by tightening eligibility for
Personal Independence Payment. | Vuk Valcic via SOPA Images/LightRocket/Getty
Images
In an initial concession, the government said existing PIP claimants wouldn’t be
affected by any eligibility cuts. It wasn’t enough: Welfare Minister Stephen
Timms was forced to confirm in the House of Commons during an actual, ongoing
welfare debate that eligibility changes for future claimants would be delayed
until a review was completed.
What started as £5 billion of savings didn’t reduce welfare costs whatsoever.
Time to U-turn: 101 days (Mar. 18, 2025 — June 27, 2025).
GROOMING GANGS INQUIRY
The widescale abuse of girls across Britain over decades reentered the political
spotlight in early 2025 after numerous tweets from X owner Elon Musk. It led to
calls for a specific national inquiry into the scandal.
Starmer initially rejected this request, pointing to recommendations left
unimplemented from a previous inquiry into child sexual abuse and arguing for a
local approach. Starmer accused those critical of his stance (aka Musk) of
spreading “lies and misinformation” and “amplifying what the far-right is
saying.”
Yet less than six months later, a rapid review from crossbench peer Louise Casey
called for … a national inquiry. Starmer soon confirmed one would happen.
Time to U-turn: 159 days (Jan. 6, 2025 — June 14, 2025).
‘ISLAND OF STRANGERS’
Immigration is a hot-button issue in the U.K. — especially with Reform UK Leader
Nigel Farage breathing down Starmer’s neck.
The PM tried reflecting this in a speech last May, warning that Britain risked
becoming an “island of strangers” without government action to curb migration.
That triggered some of Starmer’s own MPs, who drew parallels with the notorious
1968 “rivers of blood” speech by politician Enoch Powell.
The PM conceded he’d put a foot wrong month later, giving an Observer interview
where he claimed to not be aware of the Powell connection. “I deeply regret
using” the term, he said.
Time to U-turn: 46 days (May 12, 2025 — June 27, 2025).
Immigration is a hot-button issue in the U.K. — especially with Reform UK Leader
Nigel Farage breathing down Starmer’s neck. | Tolga Akmen/EPA
TWO-CHILD BENEFIT CAP
Here’s the U-turn that took the longest to arrive — but left Labour MPs the
happiest.
Introduced by the previous Conservative government, a two-child welfare cap
meant parents could only claim social security payments such as Universal Credit
or tax credits for their first two children.
Many Labour MPs saw it as a relic of the Tory austerity era. Yet just weeks into
government, seven Labour MPs lost the whip for backing an amendment calling for
it to be scrapped, highlighting Reeves’ preference for fiscal caution over easy
wins.
A year and a half later, that disappeared out the window.
Reeves embracing its removal in her budget last fall as a child poverty-busty
measure got plenty of cheers from Labour MPs — though the cap’s continued
popularity with some voters may open up a fresh vulnerability.
Time until U-turn: 491 days (July 23, 2024 — Nov. 26, 2025).
LONDON — Choosing your Brexit camp was once the preserve of Britain’s Tories.
Now Labour is joining in the fun.
Six years after Britain left the EU, a host of loose — and mostly overlapping —
groupings in the U.K.’s ruling party are thinking about precisely how close to
try to get to the bloc.
They range from customs union enthusiasts to outright skeptics — with plenty of
shades of grey in between.
There’s a political urgency to all of this too: with Prime Minister Keir Starmer
tanking in the polls, the Europhile streak among many Labour MPs and members
means Brexit could become a key issue for anyone who would seek to replace him.
“The more the screws and pressure have been on Keir around leadership, the more
we’ve seen that play to the base,” said one Labour MP, granted anonymity like
others quoted in this piece to speak frankly. Indeed, Starmer started the new
year explicitly talking up closer alignment with the European Union’s single
market.
At face value, nothing has changed: Starmer’s comments reflect his existing
policy of a “reset” with Brussels. His manifesto red lines on not rejoining
the customs union or single market remain. Most of his MPs care more about
aligning than how to get there. In short, this is not like the Tory wars of the
late 2010s.
Well, not yet. POLITICO sketches out Labour’s nascent Brexit tribes.
THE CUSTOMS UNIONISTS
It all started with a Christmas walk. Health Secretary Wes Streeting told an
interviewer he desires a “deeper trading relationship” with the EU — widely
interpreted as hinting at joining a customs union.
This had been a whispered topic in Labour circles for a while, discussed
privately by figures including Starmer’s economic adviser Minouche Shafik.
Deputy Prime Minister David Lammy said last month that rejoining a customs union
is not “currently” government policy — which some took as a hint that the
position could shift.
But Streeting’s leadership ambitions (he denies plotting for the top job) and
his willingness to describe Brexit as a problem gave his comments an elevated
status among Labour Europhiles.
“This has really come from Wes’s leadership camp,” said one person who talks
regularly to No. 10 Downing Street. Naomi Smith, CEO of the pro-EU pressure
group Best for Britain, added any Labour leadership contest will be dominated by
the Brexit question. MPs and members who would vote in a race “are even further
ahead than the public average on all of those issues relating to Europe,” she
argued.
Joining a customs union would in theory allow smoother trade without returning
to free movement of people. But Labour critics of a customs union policy —
including Starmer himself — argue it is a non-starter because it would mean
tearing up post-Brexit agreements with other countries such as India and the
U.S. “It’s just absolutely nonsense,” said a second Labour MP.
Keir Starmer has argued that the customs union route would mean hard
conversations with workers in the car industry after Britain secured a U.K.-U.S.
tariff deal last summer. | Colin McPherson/Getty Images
And since Streeting denies plotting and did not even mention a customs union by
name, the identities of the players pushing for one are understandably murky
beyond the 13 Labour MPs who backed a Liberal Democrat bill last month requiring
the government to begin negotiations on joining a bespoke customs union with the
EU.
One senior Labour official said “hardly any” MPs back it, while a minister said
there was no organized group, only a vague idea. “There are people who don’t
really know what it is, but realize Brexit has been painful and the economy
needs a stimulus,” they said. “And there are people who do know what this means
and they effectively want to rejoin. For people who know about trade, this is an
absolute non-starter.”
Anand Menon, director of the UK in a Changing Europe think tank, said a full
rejoining of the EU customs union would mean negotiating round a suite of
“add-ons” — and no nations have secured this without also being in the EU single
market. (Turkey has a customs union with the EU, but does not benefit from the
EU’s wider trade agreements.) “I’m not convinced the customs union works without
the single market,” Menon added.
Starmer has argued that the customs union route would mean hard conversations
with workers in the car industry after Britain secured a U.K.-U.S. tariff deal
last summer, a person with knowledge of his thinking said.
“When you read anything from any economically literate commentator, the customs
union is not their go-to,” added the senior Labour official quoted above. “Keir
is really strong on it. He fully believes it isn’t a viable route in the
national interest or economic interest.”
THE SINGLE MARKETEERS (A.K.A. THE GOVERNMENT)
Starmer and his allies, then, want to park the customs union and get closer to
the single market.
Paymaster General Nick Thomas-Symonds has long led negotiations along these
lines through Labour’s existing EU “reset.” He and Starmer recently discussed
post-Brexit policy on a walk through the grounds of the PM’s country retreat,
Chequers.
Working on the detail with Thomas-Symonds is Michael Ellam, the former director
of communications for ex-PM Gordon Brown, now a senior civil servant in the
Cabinet Office. Ellam is “a really highly regarded, serious guy” and attends
regular meetings with Brussels officials, said a second person who speaks
regularly to No. 10.
A bill is due to be introduced to the U.K. parliament by summer which will allow
“dynamic” alignment with new EU laws in areas of agreement. Two people with
knowledge of his role said the bill will be steered through parliament by
Cabinet Office Minister Chris Ward, Starmer’s former aide and close ally, who
was by his side when Starmer was shadow Brexit secretary during the “Brexit
wars” of the late 2010s.
Starmer himself talked up this approach in a rare long-form interview this week
with BBC host Laura Kuenssberg, saying: “We are better looking to the single
market rather than the customs union for our further alignment.” While the PM’s
allies insist he simply answered a question, some of his MPs spy a need to seize
back the pro-EU narrative.
The second person who talks regularly to No. 10 argued a “relatively small …
factional leadership challenge group around Wes” is pushing ideas around a
customs union, while Starmer wants to “not match that but bypass it, and say
actually, we’re doing something more practical and potentially bigger.”
A third Labour MP was blunter about No. 10’s messaging: “They’re terrified and
they’re worrying about an internal leadership challenge.”
Starmer’s allies argue that their approach is pragmatic and recognizes what the
EU will actually be willing to accept.
Christabel Cooper, director of research at the pro-Labour think tank Labour
Together — which plans polling and focus groups in the coming months to test
public opinion on the issue — said: “We’ve talked to a few trade experts and
economists, and actually the customs union is not all that helpful. To get a
bigger bang for your buck, you do need to go down more of a single market
alignment route.”
Stella Creasy argued that promising a Swiss-style deal in Labour’s next election
manifesto (likely in 2029) would benefit the economy — far more than the “reset”
currently on the table. | Nicola Tree/Getty Images
Nick Harvey, CEO of the pro-EU pressure group European Movement UK, concurred:
“The fact that they’re now talking about a fuller alignment towards the single
market is very good news, and shows that to make progress economically and to
make progress politically, they simply have to do this.”
But critics point out there are still big questions about what alignment will
look like — or more importantly, what the EU will go for.
The bill will include areas such as food standards, animal welfare, pesticide
use, the EU’s electricity market and carbon emissions trading, but talks on all
of these remain ongoing. Negotiations to join the EU’s defense framework, SAFE,
stalled over the costs to Britain.
Menon said: “I just don’t see what [Starmer] is spelling out being practically
possible. Even at the highest levels there has been, under the Labour Party,
quite a degree of ignorance, I think, about how the EU works and what the EU
wants.
“I’ve heard Labour MPs say, well, they’ve got a veterinary deal with New
Zealand, so how hard can it be? And you want to say, I don’t know if you’ve
noticed, but New Zealand doesn’t have a land border with the EU.”
THE SWISS BANKERS
Then there are Europhile MPs, peers and campaigners who back aligning with the
single market — but going much further than Starmer.
For some this takes the form of a “Swiss-style” deal, which would allow single
market access for some sectors without rejoining the customs union.
This would plough through Starmer’s red lines by reintroducing EU freedom of
movement, along with substantial payments to Brussels.
But Stella Creasy, chair of the Labour Movement for Europe (LME), argued that
promising a Swiss-style deal in Labour’s next election manifesto (likely in
2029) would benefit the economy — far more than the “reset” currently on the
table. She said: “If you could get a Swiss-style deal and put it in the
manifesto … that would be enough for businesses to invest.”
Creasy said LME has around 150 MPs as members and holds regular briefings for
them. While few Labour MPs back a Swiss deal — and various colleagues see Creasy
as an outlier — she said MPs and peers, including herself, plan to put forward
amendments to the dynamic alignment bill when it goes through parliament.
Tom Baldwin, Starmer’s biographer and the former communications director of the
People’s Vote campaign (which called for a second referendum on Brexit), also
suggests Labour could go further in 2029. “Keir Starmer’s comments at the
weekend about aligning with — and gaining access to — the single market open up
a whole range of possibilities,” he said. “At the low end, this is a pragmatic
choice by a PM who doesn’t want to be forced to choose between Europe and
America.
“At the upper end, it suggests Labour may seek a second term mandate at the next
election by which the U.K. would get very close to rejoining the single market.
That would be worth a lot more in terms of economic growth and national
prosperity than the customs union deal favoured by the Lib Dems.”
A third person who speaks regularly to No. 10 called it a “boil the frog
strategy.” They added: “You get closer and closer and then maybe … you go into
the election saying ‘we’ll try to negotiate something more single markety or
customs uniony.’”
THE REJOINERS?
Labour’s political enemies (and some of its supporters) argue this could all
lead even further — to rejoining the EU one day.
“Genuinely, I am not advocating rejoin now in any sense because it’s a 10-year
process,” said Creasy, who is about as Europhile as they come in Labour. “Our
European counterparts would say ‘hang on a minute, could you actually win a
referendum, given [Reform UK Leader and Brexiteer Nigel] Farage is doing so
well?’”
With Prime Minister Keir Starmer tanking in the polls, the Europhile streak
among many Labour MPs and members means Brexit could become a key issue for
anyone who would seek to replace him. | Tom Nicholson/Getty Images
Simon Opher, an MP and member of the Mainstream Labour group closely aligned
with Burnham, said rejoining was “probably for a future generation” as “the
difficulty is, would they want us back?”
But look into the soul of many Labour politicians, and they would love to still
be in the bloc — even if they insist rejoining is not on the table now.
Andy Burnham — the Greater Manchester mayor who has flirted with the leadership
— remarked last year that he would like to rejoin the EU in his lifetime (he’s
56). London Mayor Sadiq Khan said “in the medium to long term, yes, of course, I
would like to see us rejoining.” In the meantime Khan backs membership of the
single market and customs union, which would still go far beyond No. 10’s red
lines.
THE ISSUES-LED MPS
Then there are the disparate — yet overlapping — groups of MPs whose views on
Europe are guided by their politics, their constituencies or their professional
interests.
To Starmer’s left, backbench rebels including Richard Burgon and Dawn Butler
backed the push toward a customs union by the opposition Lib Dems. The members
of the left-wing Socialist Campaign Group frame their argument around fears
Labour will lose voters to other progressive parties, namely the Lib Dems,
Greens and SNP, if they fail to show adequate bonds with Europe. Some other,
more centrist MPs fear similar.
Labour MPs with a military background or in military-heavy seats also want the
U.K. and EU to cooperate further. London MP Calvin Bailey, who spent more than
two decades in the Royal Air Force, endorsed closer security relations between
Britain and France through greater intelligence sharing and possibly permanent
infrastructure. Alex Baker, whose Aldershot constituency is known as the home of
the British Army, backed British involvement in a global Defense, Security and
Resilience Bank, arguing it could be key to a U.K.-EU Defence and Security Pact.
The government opted against joining such a scheme.
Parliamentarians keen for young people to bag more traveling rights were buoyed
by a breakthrough on Erasmus+ membership for British students at the end of last
year. More than 60 Labour MPs earlier signed a letter calling for a youth
mobility scheme allowing 18 to 30-year-olds expanded travel opportunities on
time limited visas. It was organized by Andrew Lewin, the Welywn Hatfield MP,
and signatories included future Home Office Minister Mike Tapp (then a
backbencher).
Labour also has an influential group of rural MPs, most elected in 2024, who are
keen to boost cooperation and cut red tape for farmers. Rural MP Steve
Witherden, on the party’s left, said: “Three quarters of Welsh food and drink
exports go straight to the EU … regulatory alignment is a top priority for rural
Labour MPs. Success here could point the way towards closer ties with Europe in
other sectors.”
THE NOT-SO-SECRET EUROPHILES (A.K.A. ALL OF THE ABOVE)
Many Labour figures argue that all of the above are actually just one mega-group
— Labour MPs who want to be closer to Brussels, regardless of the mechanism.
Menon agreed Labour camps are not formalized because most Labour MPs agree on
working closely with Brussels. “I think it’s a mishmash,” he said. But he added:
“I think these tribes will emerge or develop because there’s an intra-party
fight looming, and Brexit is one of the issues people use to signal where they
stand.”
A fourth Labour MP agreed: “I didn’t think there was much of a distinction
between the camps of people who want to get closer to the EU. The first I heard
of that was over the weekend.”
The senior Labour official quoted above added: “I don’t think it cuts across
tribes in such a clear way … a broader group of people just want us to move
faster in terms of closeness into the EU, in terms of a whole load of things. I
don’t think it fits neatly.”
For years MPs were bound by a strategy of talking little about Brexit because it
was so divisive with Labour’s voter base. That shifted over 2025. Labour
advisers were buoyed by polls showing a rise in “Bregret” among some who voted
for Brexit in 2016, as well as changing demographics (bluntly, young voters come
of age while older voters die).
No. 10 aides also noted last summer that Farage, the leader of the right-wing
populist party Reform UK, was making Brexit less central to his campaigning.
Some aides (though others dispute this) credit individual advisers such as Tim
Allan, No. 10’s director of communications, as helping a more openly EU-friendly
media strategy into being.
For all the talk of tribes and camps, Labour doesn’t have warring Brexit
factions in the same way that the Tories did at the height of the EU divorce in
the 2010s. | Jakub Porzycki/Getty Images
THE BLUE LABOUR HOLDOUTS
Not everyone in Labour wants to hug Brussels tight.
A small but significant rump of Labour MPs, largely from the socially
conservative Blue Labour tribe, is anxious that pursuing closer ties could be
seen as a rejection of the Brexit referendum — and a betrayal of voters in
Leave-backing seats who are looking to Reform.
One of them, Liverpool MP Dan Carden, said the failure of both London and
Brussels to strike a recent deal on defense funding, even amid threats from
Russia, showed Brussels is not serious.
“Any Labour MP who thinks that the U.K. can get closer to the single market or
the customs union without giving up freedoms and taking instruction from an EU
that we’re not a part of is living in cloud cuckoo land,” he said.
A similar skepticism of the EU’s authority is echoed by the Tony Blair Institute
(TBI), led by one of the most pro-European prime ministers in Britain’s history.
The TBI has been meeting politicians in Brussels and published a paper
translated into French, German and Italian in a bid to shape the EU’s future
from within.
Ryan Wain, the TBI’s senior director for policy and politics, argued: “We live
in a G2 world where there are two superpowers, China and the U.S. By the middle
of this century there will likely be three, with India. To me, it’s just abysmal
that Europe isn’t mentioned in that at all. It has massive potential to adapt
and reclaim its influence, but that opportunity needs to be unlocked.”
Such holdouts enjoy a strange alliance with left-wing Euroskeptics
(“Lexiteers”), who believe the EU does not have the interests of workers at its
heart. But few of these were ever in Labour and few remain; former Leader Jeremy
Corbyn has long since been cast out.
At the same time many Labour MPs in Leave-voting areas, who opposed efforts to
stop Brexit in the late 2010s, now support closer alignment with Brussels to
help their local car and chemical industries.
As such, there are now 20 or fewer MPs holding their noses on closer alignment.
Just three Labour MPs, including fellow Blue Labour supporter Jonathan Brash,
voted against a bill supporting a customs union proposed by the centrist,
pro-Europe Lib Dems last month.
WHERE WILL IT ALL END?
For all the talk of tribes and camps, Labour doesn’t have warring Brexit
factions in the same way that the Tories did at the height of the EU divorce in
the 2010s. Most MPs agree on closer alignment with the EU; the question is how
they get there.
Even so, Menon has a warning from the last Brexit wars. Back in the late 2010s,
Conservative MPs would jostle to set out their positions — workable or
otherwise. The crowded field just made negotiations with Brussels harder. “We
end up with absolutely batshit stupid positions when viewed from the EU,” said
Menon, “because they’re being derived as a function of the need to position
yourself in a British political party.”
But few of these were ever in Labour and few remain; former Leader Jeremy Corbyn
has long since been cast out. | Seiya Tanase/Getty Images
The saving grace could be that most Labour MPs are united by a deeper gut
feeling about the EU — one that, Baldwin argues, is reflected in Starmer
himself.
The PM’s biographer said: “At heart, Keir Starmer is an outward-looking
internationalist whose pro-European beliefs are derived from what he calls the
‘blood-bond’ of 1945 and shared values, rather than the more transactional trade
benefits of 1973,” when Britain joined the European Economic Community.
All that remains is to turn a “blood-bond” into hard policy. Simple, right?