Britain's Brexit tensions constrain deeper EU reset

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Britain's Brexit tensions constrain EU reset

Highlights

Keir Starmer's Labour government accelerates efforts from 2022 to rebuild EU relations, but negotiations remain slow due to persistent mistrust from Brexit politics.
In May, Britain secures defence sector negotiation rights in a 150 billion euro EU rearmament fund and agrees to align on food, electricity, and emissions trade rules.
Talks intensify over potential long-term models for UK-EU relations, including Swiss-style market access, ahead of the July summit with political pressure for tangible results.

Political strains shape post-Brexit ties

As reported by Reuters, Britain and the EU are trying to improve relations after years of confrontation, but progress remains uneven as the political forces that drove Brexit continue to shape debate on both sides. Britain left the bloc on December 31, 2020, ending 47 years of membership, and the economic and political fallout is still influencing how both sides approach any closer alignment.

Michel Barnier, the EU's former Brexit negotiator and a former French prime minister, says not all of Britain's difficulties stem from leaving the EU, but he adds that Brexit has made each problem more serious. Supporters of Brexit continue to argue the move has strengthened national independence, with Vote Leave campaign chief executive Matthew Elliott saying autonomy matters more in a world where the U.S. is more unpredictable, China is more challenging and Russia remains at war in Europe.

Efforts to repair ties begin under former Prime Minister Rishi Sunak in 2022 and accelerate after Keir Starmer's Labour government is elected in 2024. That process helps rebuild trust, but concrete gains remain limited and broader mistrust still slows negotiations.

Trade, defence and market access remain in focus

Starmer describes a "new era" in relations with the EU in May last year when both sides agree a deal that allows London to negotiate access for its defence sector to a 150 billion euro European rearmament fund. Britain also agrees to align with EU rules to ease trade in food and farm goods, as well as on electricity and emissions, while the two sides are also trying to reach a reciprocal youth visa arrangement.

Charles Grant, head of the Centre for European Reform in London, says progress has been slow and painful, reflecting the mistrust that persists. The latest debate is now turning to what long-term model Britain and the EU could eventually accept, including whether London might seek access closer to the single market or customs union, or even rejoin the bloc in the longer term.

Analysts suggest Switzerland's network of agreements with the EU could offer one model by preserving some market access while giving Britain more control over migration. But British officials who favour closer ties still see the EU as rigid and legalistic, while EU officials continue to remember years of hostility from British Eurosceptics, leaving the July summit under pressure to produce visible gains that the UK government can defend at home.

In our earlier article on the economic costs of Brexit a decade after the 2016 vote, we looked at evidence that the UK has faced weaker growth, softer goods exports and stalled investment, alongside rising political fragmentation. We also noted that the debate is shifting toward rebuilding practical economic ties through bespoke agreements rather than an immediate push to rejoin the EU, as policymakers weigh the trade-offs involved.

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