UK representatives are making an effort to improve the mood and look forward but is this hope reciprocated
There are still Brexit supporters but enthusiasm appears to have waned, financial constraints which emerged for other reasons acting as a catalyst.
Business leaders are speaking out more, with Tim Slatter, head of Ford UK stating “It’s important that we maintain really good alignment to the European regulatory environment, that’s where we build and sell most of our vehicles.”
The car industry has valid concerns, for the present and for electric vehicle development. Nor are they alone, with representatives of various sectors talking about tweaking arrangements, or staying aligned to reduce costs.
That said, the political will to draw closer to Europe again is not apparent and even if this was the case, the other side’s views need to be considered.
An Opinion From The EU
Opinions expressed from Brussels on Brexit vary markedly, from we would welcome you back, to the UK being punished for leaving. A recent statement from Maros Sefcovic, vice president of the European Commission, was more balanced.
He believes that barriers to trade are likely to deepen over time, stating “Trade can no longer be as frictionless and dynamic as before. This inevitably means additional costs for businesses on both sides”.
The UK wishing to set regulations for itself was mentioned, which may mean the EU wanting to institute greater checks on imports. Divergence on AI, or financial services controls could add barriers.
Statements from Mr Sefcovic and other officials suggest they view delivering a solution for Northern Ireland as simply the UK meeting treaty needs. Not a reason for the EU to regard the UK as anything other than a third country.
Changes In The UK’s Stance
The foreign secretary, James Cleverley stated “I want us to move forward in a spirit of mutual confidence…”. Mentioning greater collaboration on migration, security, energy and climate change.
jeremy Hunt, the Chancellor, recently went to Brussels to sign a memorandum of understanding on financial services. Essentially, the creation of a forum to discuss voluntary cooperation and share information.
Still a positive start and the first visit from a UK Chancellor in three years. The opportunity taken for wider meetings with European Commissioners.
An effort at higher level tends to feed down to those dealing with practical reality on a range of issues. A less abrasive approach to the EU can only be beneficial, even though there is some way to go.
The Path Forward
The EU’s €95 billion Horizon research programme is a significant entity. One the UK helped to found but joining in with the latest version is proving difficult, despite this being part of the 2021 Trade and Cooperation Agreement (TCA).
There is ongoing debate over financial contributions, the value added by the UK and sharing responsibility. A reasonable barometer for other matters.
Those hopeful of change have staked a great deal on a review of the TCA due in 2026. The EU have however pointed out “this does not constitute a commitment to reopen the TCA, or to renegotiate supplementary agreements”.
Political and negotiative reasons do exist for appearing reticent but potential UK divergence is adding fuel. The UK keeping to the level playing field treaty commitment matters to the EU, rather than changing laws to suit one party.
Our notes on Brexit in 2023 mention a few key areas which would benefit from renegotiation. This may prove possible despite current statements but only if the relationship continues to improve and proposed changes give both parties a win.