UK-EU relations
Britain left the EU on January 31st 2020, with its economic links to the EU governed by the Trade and Co-operation Agreement (TCA) – which has not been a great deal for the UK economy. Keir Starmer’s Labour government, elected in July 2024, has sought a rapprochement with the EU. This culminated in the two sides agreeing – at a UK-EU summit in May 2025 – on a Security and Defence Partnership, and on a Common Understanding on the economic relationship. The former will allow the UK to work more closely with the EU on defence, for example by joining the EU’s Security Action for Europe (SAFE) programme. The latter has set out an agenda for closer co-operation in areas such as plant and animal health, emissions trading, electricity trading and youth mobility. In the long run, the needs of the British economy will push the government to seek closer ties; but the political context, notably the strength of the eurosceptic right, may make that difficult.
The next steps for the UK-EU reset
19 June 2025
The UK-EU summit last month was an important step towards closer co-operation and a strategic partnership. Both sides now need to turn that ambition into detailed sectoral negotiations with a clear timescale.
A perfect storm: Britain's trade malaise, weak growth and a new geopolitical moment
21 May 2025
The UK is facing its most severe trade challenge in decades – and at the worst possible time.
On Europe, Labour should reconsider its 'red chains'
16 May 2025
Labour’s reset with the EU will fail to deliver a significant boost to economic growth. A fundamental refashioning of the EU-UK relationship would require Labour to think again about freedom of movement.
Not a summit of ambition
12 May 2025
The EU-UK summit should enable leaders to respond to the threatening global situation by putting past differences behind them. However, backward-looking dogma and unnecessary red lines may result in the summit under-achieving.
UK-EU relations: Time to raise the level of ambition
21 March 2025
Geopolitical turbulence has put UK-EU differences in perspective. Britain and the EU need much closer ties.
The new EU-Swiss deal: What it means and the lessons it holds for the UK-EU 'reset'
17 March 2025
The recent political agreement between the European Commission and the Swiss government promises to stabilise their long-troubled economic relationship. The British government should pay close attention.
Can Keir Starmer reset relations with the EU?: Annual report 2024
17 February 2025
The CER's annual report starts with an essay on whether Keir Starmer can reset relations with the EU.
The gap between the 'Brexit reset' rhetoric and the reality
10 December 2024
Rough-and-ready calculations based on the stated demands of the UK and EU suggest the reset might raise Britain’s GDP by 0.3-0.7 per cent.
Where might UK-EU relations be under a Labour government?
18 July 2024
The Labour government offers a chance for a new start for UK-EU relations. But the UK will have to both address the causes of Brexit and present a compelling offer.
An open letter to Keir Starmer: Ten suggestions on how to foster better relations with Europe
08 July 2024
In an open letter to Keir Starmer, Charles Grant offers ten suggestions on how the Labour government can improve the UK-EU relationship.
Should the UK pursue dynamic alignment with the EU?
04 July 2024
The EU’s neighbours follow various models of dynamic alignment with its rules. Which model, if any, could suit the UK?
Delivering the goods: An EU trade agenda for the next UK government
28 May 2024
The Labour Party’s red lines will restrict its ambitions for changing the EU-UK relationship, but if it forms a government it should push Brussels for concessions, particularly on trade in goods.
Living next door to an elephant: Lessons for the UK from EFTA
29 April 2024
After Brexit, the UK finds itself next door to a regional trade hegemon. Britain can draw useful lessons from the experience of the EFTA countries.
Weighed down by gravity: UK trade policy after Brexit
11 March 2024
The post-Brexit vision of a UK finally free to do trade deals around the world is giving way to reality: free trade agreements deliver marginal benefits and little influence, particularly for the UK’s service-oriented economy.
A new equilibrium in Northern Ireland: Can it last?
01 March 2024
The agreement between the British government and the Democratic Unionist Party addresses immediate challenges but falls short of resolving Northern Ireland’s Brexit conundrum.
Brexit, four years on: Answers to two trade paradoxes
25 January 2024
Since the UK left the EU in 2020, its goods exports to the EU have not performed any worse than to the rest of the world, and its services exports have grown strongly. How come?
Labour's European conundrum
10 December 2023
Renewal
If and when the Labour Party takes office, it will come under pressure to negotiate a much better Brexit deal than that bequeathed by Boris Johnson.
A European strategy for Labour
27 September 2023
Keir Starmer will find it hard to improve the Tory Brexit deal – which most EU leaders like. But if he is willing to offer something in return, they may give him a better deal.
What approach should Labour take to the 2026 TCA review?
06 September 2023
A Labour government will want to reshape relations with the EU. The 2026 review of the trade deal offers only limited scope for change – but that should not constrain Labour’s ambitions.
Are the costs of Brexit big or small?
09 May 2023
Critics say my estimate – that the British economy is around 5 per cent smaller due to Brexit – is implausibly large. This insight tests their scepticism against other ways to estimate the cost of Brexit.