Rachel Reeves tiptoes towards the EU
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The chancellor delivered a strikingly pro-EU message in her second Mais lecture in the City. "Brexit did deep damage," she said. She stayed within Labour's manifesto red lines – refusing to propose rejoining the EU, or its single market – but went a little further than before in advocating closer alignment with EU rules, including responding to future EU laws: "Where it is in our national interest to align with further EU regulation we should be prepared to do so." It seems like a simple idea: if British companies abide by EU standards, barriers to trade can be reduced to the barest minimum. But, as Professor Anand Menon of King's College London, points out, "on the EU side, there is genuine concern about the UK enjoying too many of the benefits of the single market without accepting the obligations that come with membership. Equally, there is no shortage of EU firms that rather enjoy their UK competitors struggling to trade in the single market." |
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