UK chancellor Rachel Reeves will be addressing eurozone finance ministers in an attempt to repair tensions since the UK’s departure from the EU with the hope of boosting trade which has suffered dramatically after Brexit.
Instead of the chaotic negotiations which burdened the previous UK Conservative government, the Labour cabinet and Prime Minister Keir Starmer are keen to get Britain back on a good footing with its previously close trading partners.
Chancellor Reeves has been tasked with making an “economic reset” which includes encouraging better trading relations in order to drive up investment and revitalising EU economic partnerships. In her speech to ministers in Brussels she is due to state: "It is a signal of the new UK government's commitment to resetting our country's relationship with European Union, and the importance I place in realising the economic potential of our shared future."
The emphasis is on more business-like relations instead of the fractious communication which has dominated the last eight years since British citizens voted to exit the European Union. Labour then hopes that this will be passed onto working people and UK businesses through lower prices, better jobs and more investment.
Article: The best country to start a business in Europe
The main issues stem from the problems that British exporters are now experiencing due to increased paperwork and customs tariffs to get their goods into European markets, with European traders also experiencing the same on the other side. As the UK and EU markets deal in over £650 billion of trade each year, it’s imperative that the Labour government use their new power to foster a better relationship where businesses on both sides of the water can flourish and grow.
Unfortunately that comes too late for many businesses which suffered a huge impact when the new rules came into place. Some put estimates on almost a third of UK businesses suffering some sort of fallout from the Brexit vote. But it wasn’t only export and import traders that got hit. It was also those that employed EU workers who are now no longer able to work without visas in place. However, there doesn’t seem to be any change as yet with freedom of movement policies and Labour is keen to reiterate that Brexit will not be undone, but that their new attitude will hopefully foster trust and a more pragmatic approach to problem-solving.
The current political difficulties that France and Germany are experiencing may mean that the UK has more leverage as the two European powerhouses are looking slightly more depleted while they focus inward to steady their own economies, but it all comes down to whether Brussels is feeling in a more reconciliatory mood after years of battling the Brits.
Article: What is the best startup visa scheme in Europe?
Any softening of bureaucratic regulatory systems would definitely benefit both sides, so any small change would be welcome and may mean the difference between boom and bust for both the UK and European trading businesses.
For more information on how to open a European business or a business in the UK, please download our free guides below, or contact us direct through our contact page.
