Tag - Customs Union

Downing Street dismisses Sadiq Khan’s call to reverse Brexit
LONDON — Downing Street on Thursday brushed off London Mayor Sadiq Khan’s call for Labour to take Britain back into the European Union. Prime Minister Keir Starmer’s spokesperson told reporters that the government’s manifesto promises not to unpick Brexit “still stand.” The Labour mayor of London had told Italian newspaper La Repubblica that the U.K. should seek to get back into the EU’s customs union and single market “during this parliament” — and then push to rejoin the bloc wholesale. “We should rejoin the customs union this parliament … we should rejoin the single market. We should try and do this during this parliament,” he told the newspaper. “And then we should, as a Labour Party, fight the next general election with a clear manifesto commitment, a vote for Labour means we would rejoin the European Union.” Khan, whose city London voted strongly to remain in the EU in 2016, said the damage Brexit had done had made the U.K. rejoining the bloc “inevitable.” But asked about the mayor’s comments Thursday, the prime minister’s spokesperson told a regular briefing of journalists in Westminster: “The government’s red lines that are set out in the manifesto stand.” The spokesperson added that the manifesto was valid for “the duration of the parliament” and when pushed on future plans said: “We’re not going to write the manifesto for the next election here.” Khan is the most senior Labour figure thus far to broach the topic of the U.K. rejoining the bloc — with the issue still considered a political hot potato in Westminster. It comes after Chancellor Rachel Reeves Tuesday said the U.K. should align with EU rules in areas where it is in its economic interest to do so. Starmer’s government is already negotiating an agrifood deal, an electricity trading deal, and a youth mobility agreement with the bloc — as well as beefing up cooperation on security and climate action. But Starmer has ruled out rejoining the EU customs union, single market, or reintroducing free movement of people with the bloc. U.K. public opinion has tuned sharply against Brexit in the near decade since the 2016 vote, with the latest survey from YouGov this week showing 54 percent of Brits support rejoining the bloc versus 34 percent who oppose doing so, with 12 percent undecided.
Cooperation
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Finland’s Stubb: Brexit was like sawing off your leg for no reason
LONDON — Brexit was “a colossal mistake” and the U.K. should rejoin the European Union, Alexander Stubb said Tuesday.   But instead of waiting for that to happen, London and Brussels should work together now to deepen their relationship in key areas such as defense and intelligence sharing, trade and access to the single market, and technology and innovation, the Finnish president said.  Speaking at the Chatham House think tank during a visit to London, he said the chaotic state of the world in which the old, rules-based order no longer holds should prompt a radical rethink of the EU-U.K. relationship.  “I think Brexit was a colossal mistake,” said former London student Stubb, who has a British wife and children with dual nationality. “I am too diplomatic to express exactly what I think about those who promoted Brexit during the campaign, and those who still say that Brexit is a good thing … But I do think it’s not only shooting yourself in the foot, but it’s like amputating your leg without medical reason for doing it.”  Stubb said he recognized that British Prime Minister Keir Starmer did not aim to rejoin the EU but argued that Brits and Europeans should be “pragmatic” now and show flexibility on both sides.  Negotiations have been ongoing over moves toward deepening the partnership between London and Brussels since Starmer’s Labour won power in 2024, but progress has been held back over disagreements over youth mobility programs, student fees and how much the U.K. should pay to take part in an arms investment package.  “We need a U.K. voice in Europe. We really miss you guys,” Stubb said. “I should probably express my view that it took you seven years to negotiate yourselves out of the EU, it will take you seven years to regret it, and then seven years to come back in. I hope.” Stubb said British membership of the EU’s customs union should be possible, alongside participation in the single market. Red lines during years of Brexit negotiations meant the U.K. left both structures five years ago, under a bare bones deal that Boris Johnson negotiated.  “We need to be super pragmatic,” he said, instead of Europeans thinking they should “continue to punish” the U.K. for leaving the bloc. “Get out of the mindset that the U.K. should not be a part of the customs union, or the U.K. should not be a part of the internal market. Think about a flexible way of dealing with it.” More broadly, Stubb suggested the EU should reform its structures to allow more flexibility in the way member countries work together, and work with states that are not formal members of the EU.  He said Iceland is renewing its interest in becoming a member, he’d like to see Norway join the bloc, and he joked to Canadian Prime Minister Mark Carney that Canada should also take a look at EU membership when the pair went running together on Tuesday morning in London. 
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Britain told to stop being so ‘secretive’ about its Brexit reset
LONDON — The British government should stop being “unnecessarily secretive” about its plans for closer relations with the European Union and be much clearer about what it wants, the chair of the U.K. parliament’s Foreign Affairs Committee said. In a report released on Wednesday, the cross-party committee of lawmakers urged ministers to publish a white paper outlining what they want the eventual relationship with the EU — billed as a Brexit “reset” — to look like. The Labour government should, they argued, “clarify” whether it is reconsidering its election manifesto red lines on trying to rejoin the bloc’s single market and customs union — and whether “it can envisage any circumstances in which it would be prudent to do so.” “We do feel that the government is being unnecessarily secretive about it all and isn’t sufficiently clear about what it is that it’s doing and why — which we think is unfortunate,” Emily Thornberry told POLITICO in an interview timed with the report’s launch. Thornberry, the veteran Labour MP for Islington South, whose constituency neighbors that of Prime Minister Keir Starmer, said she understood why the government had been “nervous” when starting talks with Brussels, but said it should now be more ambitious and open. “The truth is that the public have just sort of shrugged their shoulders and said, well, yeah, get on with it,” the committee chair said. “And so I think that it has been incumbent on the government to be more ambitious, to go further, and to be clearer about what it is that we want. Because it’s quite clear what the Europeans want, and that there are times when it is not necessarily as clear about what it is that we want to achieve.” Starmer last year struck a deal in principle with the EU that opened talks on a spread of agreements covering trade in agri-food, electricity interconnections, carbon markets, and visas for young people. Negotiations on the topics are currently ongoing, with most of the files expected to be completed by the summer. But the prime minister and his finance chief Rachel Reeves have since hinted that they want to go further and align the U.K. with the EU single market in other areas — while ruling out joining the EU customs union. The government is yet to say exactly which sectors it would prioritize, however — and Starmer has said he wants the U.K.-EU relationship to be “iterative” with new cooperation added on an annual basis at regular summits. SCRUTINY The new report also calls for the re-establishment of a dedicated European Scrutiny Committee in the House of Commons, to oversee the Brexit reset and Britain’s wider relationship with the continent. A version of the specialized EU affairs committee had existed since 1972, but it was disestablished by Starmer’s new government in 2024 — with responsibility for the topic passing to Thornberry’s Foreign Affairs Committee, as well as a group of unelected lawmakers in the House of Lords. Thornberry told POLITICO: “The truth is that there are only 11 of us … we had, at one stage, ten reports open, which sounds ridiculous, but then you think about the state of the world, and you think, well, yeah, of course. “We haven’t properly done a study into China yet. And how can we not have done an inquiry into China? The reason is because you just can’t do everything, although we are trying. So I think in order to give our developing relationship with the European Union the scrutiny that it definitely deserves, we do think that there needs to be another team working on it.” A U.K. government spokesperson said: “Our priorities are clear: working in the national interest to deliver a strategic shift in our relationship with the EU through improved diplomatic, economic, and security cooperation. “This includes securing a landmark food and drink trade deal and the carbon linking agreement by the next UK-EU Summit that will add £9 billion a year to the UK economy. “We are stripping away the costly bureaucracy and red tape that acts as a drag on growth, backing British jobs and putting more money in people’s pockets across the country.”
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Rebuilding EU ties ‘the biggest prize’ for British economy, Reeves says
LONDON — Britain’s chief finance minister will argue closer integration with the EU offers the U.K. the best opportunity for higher economic growth —  ahead of links with the U.S. and China. Rachel Reeves will say Wednesday evening that stronger ties with the European bloc are “the biggest prize” for Britain, while stressing that calculation isn’t “about choosing sides but about geography.” “There are three big economic blocks: U.S., China and Europe,” Reeves will say, according to extracts shared with POLITICO. “We will always seek every opportunity to grow our economy and these trading relationships, but ultimately only one of these is on our doorstep, and so the biggest prize is closer integration with Europe.” The ruling Labour Party made economic growth a top priority when it won power in 2024, and has since embarked on a reset of relations with the EU following Britain’s departure from the bloc in 2020. But Reeves, who is due to speak at an event organized by the Brussels think tank Bruegel at the London School of Economics, will emphasize the U.K. will only align with EU regulation when it’s in Britain’s “national interest.” The U.K. government pledged not to rejoin the EU single market or customs union in it election manifesto. Some Labour MPs have backed closer relations as a vehicle for stronger economic relations amid the volatility caused by U.S. President Donald Trump’s tariffs. Labour continues to languish in the polls behind Nigel Farage’s Reform UK, who was a key figure in the 2016 Brexit campaign.
British politics
Regulation
Tariffs
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EU looks to rekindle ties with Turkey as a critical partner in Ukraine
BRUSSELS — After years of looking at Turkey as a problem, the European Union is now viewing it as part of the solution. As negotiations for peace in Ukraine gather momentum, Turkey’s potential role in the post-war order — particularly as a peacekeeper and regional powerbroker in the Black Sea —makes it a critical partner for the EU. However, Brussels is taking baby steps with a country that has been backsliding on democracy and whose Islamist leader, Recep Tayyip Erdoğan, has jailed high-profile political opponents. In an attempt to thaw relations, Enlargement Commissioner Marta Kos will visit Turkey on Friday. Ahead of her trip, Kos told POLITICO in a written statement: “Peace in Ukraine will change the realities in Europe, especially in the Black Sea region. Türkiye will be a very important partner for us.” “Preparing for peace and stability in Europe implies preparing a strong partnership with Türkiye,” she added. Turkey is a military heavyweight. It has the second-largest armed forces in NATO and holds a crucial strategic position in the Mediterranean and Middle East. Ankara’s control of the Bosphorus gives it immense sway over regional security, and it played a key role in brokering the Black Sea deal in July 2022 that granted safe passage to ships carrying Ukrainian grain. The country of 88 million people has also said it is willing to send peacekeeping troops to Ukraine if a deal is struck with Russia, and that it would take a leading role in Black Sea security.  However, relations between the EU and Turkey have deteriorated over the years, and have hardly been helped by Erdoğan’s lurch to autocracy and his crackdown on opposition mayors. Although officially a candidate to join the EU, the negotiations have been frozen since 2018. “In the latest EU enlargement reports we have seen steps away from EU standards, especially on the rule of law and democracy,” Kos said. “I know Türkiye has a very long democratic tradition and also a strong civil society, and this is what we need to see strengthened to build trust between the EU and Türkiye.” In Ankara, to take the first steps to a rapprochement, Kos will attend a ceremony in which the European Investment Bank and Turkey will sign off on €200 million in loans for renewable energy projects. The EIB suspended new lending to Turkey in 2019 because of a dispute over oil and gas drilling off Cyprus. Also on Friday, the Commission will unveil a study on “advancing a cross-regional connectivity agenda” with Turkey, Central Europe and the South Caucasus. The study, seen by POLITICO, maps out how investment is needed to strengthen transport, trade, energy and digital connections along the Trans-Caspian Corridor, which links China, Central Asia, the South Caucasus and the Black Sea. These are symbolic first steps toward bringing Ankara back into the fold, but they’re not what Turkey really wants from the EU — that would be an updated customs union agreement. The old deal was signed in 1995. New trade agreements signed by Brussels with India and the Mercosur group of South American countries put Turkey at a competitive disadvantage. Once they’re in place, Ankara will be forced to grant tariff-free access to goods from those countries, but that benefit won’t be reciprocated. Even Ekrem İmamoğlu, the democratically elected mayor of Istanbul, whose arrest last March triggered massive nationwide protests and international condemnation, weighed in in favor of upgrading the customs union deal. In a plea sent from his prison cell to European Commission President Ursula von der Leyen, European Council chief António Costa and Parliament President Roberta Metsola, İmamoğlu asked the EU to modernize the customs agreement with Turkey. “The Customs Union remains the only rules-based and normative framework underpinning Türkiye–EU relations,” İmamoğlu said in a social media post Thursday. “In the wake of EU free trade agreements with Mercosur and India, the asymmetrical consequences for Türkiye have become increasingly visible.” Updating Turkey’s deal would require buy-in from the European Council. However, Greece and Cyprus are staunchly opposed to warming relations without a goodwill gesture first from Ankara. Cyprus wants Ankara to allow its ships into Turkish ports, according to an EU official. Ankara does not recognize Cyprus due to the 1974 division of the island following a Turkish military invasion. “The strength of any future partnership needs to be underpinned by good political relations with our member states, and especially good neighbourly relations and relations with Cyprus,” Kos said. Cyprus’ deputy minister for European affairs, Marilena Raouna, told POLITICO that the country’s presidency of the Council of the EU “can be an opportunity” for EU-Turkey relations. She said Cyprus “has been constructive. And we look to Türkiye to also engage constructively.” So far, Ankara has shown little appetite to extend an olive branch. Last year it rejected Cyprus President Nikos Christodoulides’ proposal that Turkey open its ports to Cypriot-flagged ships in exchange for easier access to European visas for Turkish businesspeople. But U.S. President Donald Trump’s reshaping of geopolitical and trade relationships could push Europe and Turkey back toward one another. “The world is changing and history is accelerating. Türkiye-EU relations also need to adapt,” Turkey’s ambassador to the EU, Yaprak Balkan, told POLITICO. “The way these relations can become stronger is by building on mutual interests. We hope that we can build upon this philosophy in a very concrete manner. Türkiye’s strategic objective continues to be accession to the European Union and this should be the guiding light in our relations.” Restarting EU membership negotiations is not in the EU’s thinking just yet. Still, Kos said that “we need to look with fresh eyes at our relations” with the country. “My visit to Ankara … is about rebuilding trust and exploring how we can make our economic relationship work better for both sides.”
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Starmer vows to take UK deeper into EU single market
BEIJING — Keir Starmer wants to take the U.K. deeper into the European Union single market — if Brussels will let him. Speaking to reporters during a visit to China, the British prime minister said he wanted to “go further” in aligning with the European market where it is “in our national interest.” In May last year Starmer effectively agreed to take the U.K. back into Brussels’ orbit in two sectors: agriculture and electricity. Those agreements, which are currently being finalized, will see the U.K. follow relevant EU regulations — in exchange for more seamless market access. Seemingly buoyed by a positive reception and a smaller than anticipated Brexiteer backlash, Starmer is now doubling down. “I think the relationship with the EU and every summit should be iterative. We should be seeking to go further,” the prime minister told reporters. “And I think there are other areas in the single market where we should look to see whether we can’t make more progress. That will depend on our discussions and what we think is in our national interest. “But what I’m indicating here is — I do think we can go further.” The comments are a significant rhetorical shift for the Labour leader, whose 2024 election manifesto promised that “there will be no return to the single market” — as well as the customs union or free movement. While the Labour government has softened on the single market in office, it has arguably hardened on the customs union. Starmer told reporters that “the place to look is the single market, rather than the customs union,” arguing that joining the latter would require unpicking trade deals struck under Britain’s newly independent trade policy. GOING SWISS? While EU officials say they are always open to concrete U.K. proposals, rejoining the single market sector-by-sector might not be entirely straightforward. Brussels agreed to British access for agriculture and electricity in part because of pressure from European industry, which will arguably benefit from the new arrangements as much as the British side. But the dynamic is different in other sectors, where some European firms have been able to thrive at the expense of their locked-out British competitors. There will also be debates in Brussels about where the bloc should draw the line in granting single market access to a country that does not accept the free movement of people — a requirement other states like Norway and Switzerland must respect. Officials are also wary that the EU-U.K. relationship may come to resemble the worst aspects of the Swiss one, a complicated mess of agreements which is subject to endless renegotiation and widely disliked in Brussels. CHEMICAL ATTRACTION The prime minister would not elaborate on which sectors the U.K. should seek agreements with the EU on, stating only that “we’re negotiating with the EU as we go into the next summit.” British officials say that for now they are focused on negotiating the agreements promised at last May’s meeting. One senior business representative in Brussels, granted anonymity because their role does not authorize them to speak publicly, said alignment in sectors including chemicals, cosmetics, and medical devices could be advantageous to businesses on both sides of the English Channel. As well as the agreements on electricity and agriculture, the U.K. and EU last May agreed a security agreement to cooperate more closely on defense, and to link their emissions trading systems to exempt each other from their respective carbon border taxes. They also agreed to establish a youth mobility scheme, which will see young people get visas to live abroad for a limited period. Starmer reiterated the U.K.’s position that “there has got to be a cap” on the number of people who can take advantage of the scheme and “there has got to be a duration agreed.” “And it will be a visa-led scheme. All of our schemes are similar to that. We are negotiating,” he added. Dan Bloom reported from Beijing. Jon Stone reported from Brussels.
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Agriculture
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Meet the Labour tribes trying to shape Britain’s Brexit reset
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?
Defense
Politics
Military
Security
UK
UK trade unions urge Labour to revisit EU customs union
Britain’s biggest trade union body has called on the Labour government to consider rejoining an EU customs union, reopening a core Brexit fault line as the party grapples with weak growth and rising pressure from its traditional base. In an interview with the Guardian, Trades Union Congress (TUC) General Secretary Paul Nowak said Labour should seek the closest possible economic relationship with the EU to ease trade friction and support household incomes. “The government needs to do whatever it can to build the closest possible positive working relationship with Europe economically and politically … up to and including the customs union,” Nowak said. The U.K. left the EU customs union after the 2016 Brexit referendum, formally exiting the bloc in January 2020 under then-Prime Minister Boris Johnson. Britain remained aligned with EU trade rules during a transition period before fully leaving the customs union on Jan. 1, 2021, when the EU-U.K. Trade and Cooperation Agreement took effect.  The move restored Britain’s ability to strike independent trade deals but introduced customs checks, rules-of-origin requirements and new barriers for exporters. Prime Minister Keir Starmer has so far ruled out rejoining the customs union, framing it as a red line while promising a broader “reset” with Brussels. “We are getting a closer relationship with the EU on a number of fronts, including on trade and the economy,” Starmer told MPs earlier this month, adding: “We have clear red lines in relation to the single market and the customs union.”
Foreign Affairs
Politics
Cooperation
UK
British politics
UK rejoins EU’s Erasmus exchange scheme after Brexit hiatus
LONDON — British students will once again be able to take part in the EU’s Erasmus+ exchange scheme from January 2027 — following a six-year hiatus due to Brexit. U.K. ministers say they have secured a 30 percent discount on payments to re-enter the program that strikes “a fair balance between our contribution and the benefits” it offers. The move is one of the first tangible changes out of Keir Starmer’s EU “reset,” which is designed to smooth the harder edges off Boris Johnson’s Brexit settlement while staying outside the bloc’s orbit. In an announcement on Wednesday Brussels and London also confirmed they were formally beginning negotiations on U.K. re-entry into the EU’s internal market for electricity. Both sides hope the move, which was called for by industry in both sides of the Channel, will cut energy bills while also making it easier to invest in North Sea green energy projects — which have been plagued by Brexit complications. They also pledged to finish ongoing talks on linking the U.K. and EU carbon trading systems, as well as a new food and drink (SPS) deal, by the time they meet for an EU-U.K. summit in 2026. The planned meeting, which will take place in Brussels, does not yet have a date but is expected around the same time as this year’s May gathering in London. The announcements give more forward momentum to the “reset,” which faltered earlier this month after failing to reach an agreement on British membership of an EU defense industry financing program, SAFE. The two sides could not agree on the appropriate level of U.K. financial contribution. The pledge to finalize carbon trading (ETS) linkage next year is significant because it will help British businesses avoid a new EU carbon border tax — CBAM — which starts from Jan. 1 2026. While the tax, which charges firms for the greenhouse gas emissions in their products, begins on Jan. 1, payments are not due until 2027, by which time the U.K. is expected to be exempt. But it is not yet clear whether British firms will have to make back payments on previous imports once the deal is secured, and there is no sign of any deal to bridge the gap. WIDENING HORIZONS EU Relations Minister Nick Thomas-Symonds, who negotiated the agreement, said the move was “a huge win for our young people” and would break down barriers and widen horizons so that “everyone, from every background, has the opportunity to study and train abroad.” European Parliament President Roberta Metsola welcomes British Minister for the Constitution and European Union Relations Nick Thomas-Symonds. | Ronald Wittek/EPA “This is about more than just travel: it’s about future skills, academic success, and giving the next generation access to the best possible opportunities,” he said. “Today’s agreements prove that our new partnership with the EU is working. We have focused on the public’s priorities and secured a deal that puts opportunity first.” The expected cost of the U.K.’s membership of the Erasmus+ program in 2027 will be £570 million. Skills Minister Jacqui Smith said Erasmus+ membership is “about breaking down barriers to opportunity, giving learners the chance to build skills, confidence and international experience that employers value.” Liberal Democrat Universities Spokesperson Ian Sollom also welcomed U.K. re-entry into the exchange scheme but said it should be a “first step” in a closer relationship with the EU. “This is a moment of real opportunity and a clear step towards repairing the disastrous Conservative Brexit deal,” he said. “However while this is a welcome breakthrough, it must be viewed as a crucial first step on a clear roadmap to a closer relationship with Europe. Starting with negotiating a bespoke UK-EU customs union, and committing to a youth mobility scheme for benefit of the next generation.”
Defense
Energy
Agriculture and Food
UK
Borders
EU countries agree to tax cheap packages from July
BRUSSELS — Cheap packages entering the EU will be charged a tax of €3 per item from next July, the bloc’s 27 finance ministers agreed on Friday. The deal effectively ends the tax-free status for packages worth less than €150. The flat tax will apply for each different type of item in a package. If one package contains 10 plushy toys, the duty is applied once. But if the shipment also contains a charging cable, another €3 is added. The flood of untaxed and often unsafe goods prompted the European Commission to propose a temporary solution for the packages under €150 a month ago. This “de minimis” rule allows exporters like Shein and Temu to send products directly to consumers, often bypassing scrutiny. The EU has already received more packages in the first nine months of 2025 than in the entire previous year, when the counter hit 4.6 billion. French Finance Minister Roland Lescure called it “a literal invasion of parcels in Europe last year,” which would have hit “7, 8, 9 billion in the coming years if nothing was done.” An EU official told POLITICO earlier this month that at some airports, up to 80 percent of such packages arriving don’t comply with EU safety rules. This creates a huge workload for customs officials, a growing pile of garbage, and health risks from unsafe toys and kitchen items. EU countries have already agreed to formally abolish the de-minimis loophole, but taxing all items based on their actual value and product type will require more data exchange. That will only be possible once an ambitious reform of the bloc’s Customs Union, currently under negotiation, is completed by 2028. The €3 flat tax is the temporary solution to cover the period until then. The rising popularity of web shops like Shein and Temu, which both operate out of China is fueling this flood. France suspended access to Shein’s online platform this month. This €3 EU-wide tax will be distinct from the so-called handling fee that France has proposed as a part of its national budget to relieve the costs on customs for dealing with the same flood of packages. Klara Durand and Camille Gijs contributed to this report.
Data
Negotiations
Technology
Customs
Trade