Capital Economy, Business and Finance
Rachel Reeves will ask Eurogroup finance ministers today for a reset in EU-UK economic relations, without spelling out what it might comprise. Her audience knows she can’t talk about rejoining the EU single market or customs union because of Labour’s quasi-religious deference to the pro-Leave “hero voters” whom it credits for its July election win. Reeves knows Brussels wants her at least to show some flex on a youth mobility scheme and EU access to UK fishing waters. That could open the way to talks on the sort of bespoke relationship Britain needs and Brussels says it can’t consider, except when it can. Reeves hopes this is one of those times because France and Germany are in an economic funk. Funk or not, EU-UK trade is worth nearly a trillion euros a year.
