Rachel Reeves vows to ‘break down obstacles’ to UK-EU post-Brexit commerce — speech in full

Learn Reeves’ speech in full under: 

Paschal, pals – thanks for inviting me as we speak.

And let me pay tribute to you and the Eurogroup’s management…

…for steering Europe’s economies by the large challenges of latest years.

That is the primary time a British Chancellor has attended a gathering of EU finance ministers for the reason that UK left the EU.

And there might be no extra essential second to take action, than now.

I hope it is a additional a sign of the brand new UK Authorities’s dedication to resetting our nation’s relationship with our pals and allies within the European Union…

… and the significance I place in realising the financial potential of our shared future.

We stay in a world in flux, the place outdated financial certainties are being swept away.

Financial dependencies have turn into – in Mario Draghi’s phrases – financial vulnerabilities.

The bloodiest battle since WWII is tearing Ukraine aside.

And the burden of the final 20 years of disaster…

…from the monetary crash to excessive inflation to the influence of a altering local weather…

…falling on the shoulders of working individuals.

So we, because the finance ministers of Europe, face an pressing query.

How can we drive progress to make working individuals higher off?

How can we create a brand new consensus for financial coverage…

…that can permit us to beat the challenges we face…

… guarantee our economies are aggressive below international pressures…

…and ship sturdy, safe, sustainable progress for the good thing about working individuals?

I need to use my remarks to argue that a part of the reply to that query…

…have to be a more in-depth financial relationship between the UK and the EU, in 3 ways.

First, by confronting collectively shared challenges; together with the conflict in Ukraine.

Second, by defending our collective perception that openness is the path to competitiveness.

And third, by deepening our financial ties.

The expansion problem

The Draghi and Letta stories have been primarily centered on the EU.

However for the UK, they describe a world – and a set of challenges – which can be deeply acquainted.

A decades-long productiveness puzzle.

Low funding.

An ageing inhabitants.

And a set of acute fiscal calls for coming at a time of already-high public indebtedness.

Within the UK, our response to the competitiveness challenges…

…relies on a method of stability, funding, and reform.

Stability means not simply the political stability of a giant majority and a five-year time period…

… however adopting a brand new set of fiscal guidelines that require us to take powerful selections on spending, on welfare, and on tax…

…to revive public funds and steadiness the present finances.

Alongside stability comes funding, by growing capital funding by over £100bn over 5 years…

…focusing on high-growth areas like transport, infrastructure, and clear power.

And we’re delivering reform…

… by modifications to our planning system to unlock housing and new infrastructure…

… insurance policies to cut back financial inactivity, enhance abilities and convey individuals again to work…

… and a contemporary industrial technique, to be revealed subsequent 12 months.

An financial technique with a transparent goal in thoughts: to rebuild Britian and make each a part of the nation higher off.

A method that’s not merely about traces on a graph, however about extra money in individuals’s pockets…

… public companies which can be there for individuals once they want it…

…and companies creating wealth and alternative for all.

Confronting shared challenges

Because the UK and EU develop the following phases of our partnership…

… I imagine it could be a profound mistake to imagine that we’re stronger alone.

Collectively, we’re residence to over 30 of the world’s prime 100 universities.

We comprise 24 of NATO’s 32 allies.

Once we converse collectively on the G7 or the G20 as leaders on tackling local weather change or selling reform of the worldwide monetary establishments, the world listens.

However shut as we’re, I do know that the previous few years have been fractious.

Division and chaos outlined the final authorities’s method to Europe.

It is not going to outline ours.

We would like a relationship constructed on belief, mutual respect, and pragmatism.

A mature, business-like relationship…

…the place we are able to put behind us the low ambitions of the previous…

…and transfer ahead, centered as a substitute on all that we’ve in frequent…

…and all that we’d obtain collectively to maintain our international locations protected, safe and affluent.

And that begins with our assist for Ukraine.

Russia is prepared to just accept any lack of life…

… ally with any regime…

… and violate any worldwide norm in its unlawful invasion.

And I’m pleased with what we’ve contributed, working along with the EU and the G7.

We’ve stood united and collaborated strongly…

…to introduce a complete, progressive package deal of sanctions …

…which can be undermining Russia’s capability to wage conflict.

And your efforts to unlock income from Russian sovereign belongings has enabled us to collectively develop the extraordinary income acceleration mechanism…

…to supply Ukraine with important upfront assist once they want it most.

I’m significantly pleased with our cooperation with the Fee, and EU member states on the G7-led Oil Worth Cap – we might not have been capable of obtain our targets by appearing individually.

And our efforts have been rewarded: these sanctions have cumulatively contributed to a 30% discount in Russian state oil revenues in 2023 in comparison with 2022.

However we are able to’t cease there.

The UK and the EU should proceed to face sturdy alongside our companions in Ukraine and stay artistic…

…coordinating our efforts to ramp up strain on the Russian economic system and ravenous Putin of the revenues he must fund his conflict.

And one of many methods we are able to do that’s by working collectively as trusted companions on defence and procurement, in addition to analysis and growth.

That may give a robust demand sign to our collective European industries…

…giving them the knowledge to take a position, innovate, and ramp up manufacturing.

As soon as once more, the UK and EU working collectively, to make sure our collective safety.

Openness as the trail to prosperity

However in addition to a more in-depth partnership on defence and safety…

…I imagine we should proceed to make the case collectively for an important precept…

…the significance of free, open commerce.

In fact, it could be naïve in as we speak’s world to strive to return to the world of hyper-globalisation.

The shocks we’ve endured in recent times present that we’ve turn into too uncovered to provide chain disruptions, illness and battle.

However on the similar time, it could be a profound mistake to desert free commerce.

Our residents profit considerably from all of the funding, innovation, and decrease costs that free commerce brings.

As an alternative of placing up new obstacles, our openness to international commerce must be bolstered by strengthening our resilience at residence…

… which we are going to do by our trendy industrial technique …

… by supporting our progress driving sectors and addressing dangers to provide chains.

And which means working nearer with our allies.

We should always not make false decisions on this new world. As our Prime Minister Keir Starmer stated final week:

The concept that the UK, or certainly the EU, should select between these allies…

…that by some means we’re both with America or the EU, is totally fallacious.

Sure, the UK will all the time stay dedicated to our relationship with the US…

… and there’s a lot potential for us to deepen our financial relationship on areas akin to rising applied sciences.

And sure, we should additionally discover the fitting approach to construct a steady, long-term relationship with China…

… the place we recognise each the worth of co-operation in addressing international challenges like local weather change…

… but in addition the significance of sturdy problem the place wanted.

However we need to and we are going to search a deeper, extra mature relationship with our European neighbours too after too a few years of actively trying to transfer away.

We want methods to reinforce our partnership, share our intelligence and discover alternatives to co-operate on points, together with areas like financial safety.

Bilateral ties

We’re already working collectively properly on frequent challenges…

…. with deeper commerce between allies on the coronary heart of financial competitiveness.

I imagine {that a} nearer financial relationship between the UK and the EU is about enhancing each our progress prospects.

It isn’t a zero sum recreation.

Within the long-run, Brexit is anticipated to trigger UK commerce depth to fall by 15%…

… and with items exports between each the UK and EU persevering with to stay under 2018 ranges, that is impacting UK and EU economies alike.

I do know from chatting with enterprise that they need to see commerce obstacles diminished….

…And so, the reset in relations is about doing what’s in one of the best pursuits of our shared economies.

Breaking down obstacles to commerce.

Creating alternatives to take a position.

Increasing option to shoppers.

And serving to our companies to promote in one another’s markets…

… as a result of it’s enterprise that’s on the beating coronary heart of our potential to develop…

… and the beating coronary heart of our competitiveness and financial success.

That’s why I’m right here as we speak; that’s what our reset seeks to attain.

So sure, we are going to implement our present agreements with you in good religion…

We intend to construct on these agreements to replicate our mutual pursuits.

And we will likely be extra bold in taking sensible steps to strengthen our financial relationship, benefiting each the UK and the EU.

Nearer cooperation too on monetary companies is a superb instance of power by openness…

… with the EU-UK Monetary Companies Regulatory Discussion board attributable to meet for the third time early subsequent 12 months.

Throughout Europe, we have to unlock non-public capital to spend money on future progress.

The UK has deep international capital markets that may fund the expansion that economies throughout the continent want…

…very important to assist all our industries and progressive entrepreneurs entry finance, develop and keep in Europe.

And we should work collectively, as a result of the truth is that our monetary markets are extremely interconnected….

…and collectively guaranteeing monetary stability is a prerequisite for financial progress.

The UK will all the time stay dedicated to excessive worldwide requirements of regulation…

…for the good thing about the true economic system not simply within the UK, however throughout Europe too…

… and never simply in monetary companies, however throughout the economic system…

… as a result of openness to one another’s markets is a supply of power, not weak spot.

Conclusion

Paschal, pals – I stay up for listening to your ideas this afternoon.

It is a second to reset our relationship.

As a result of in an age of geopolitical uncertainty…

…with commerce obstacles rising…

…we should always bear in mind the larger image.

The UK and EU share the identical values and pursuits.

We’re democracies with open economies and robust social protections.

In an unsure world, we’re neighbours and multilateral companions, with a lot to share and far to supply.

And I imagine that by a more in-depth financial relationship between us…

…we cannot solely overcome the shared challenges we face…

…however ship safety and prosperity for working individuals proper throughout Europe.

Thanks.

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