Rachel Reeves’ push to improve EU ties remains boxed in by red lines

Rachel Reeves is advocating for a "more profound and developed partnership" between the UK and the EU. This was the main point she emphasized during her address to the finance ministers of the EU in Brussels two weeks ago.

During her short address at the meeting with her European colleagues—the first time a UK chancellor has participated since Brexit—Reeves referenced the UK's connection to the EU on nine occasions.

She desired a relationship that was not only deeper and more developed but also more intimate and robust. It needed to feel “grown-up and professional” while being founded on trust, mutual respect, and practicality.

Not much specific information came out of Reeves's visit to Brussels, but when a chancellor reiterates the same point nine times, it's definitely something to pay attention to.

As the economy remains stagnant, sources within the Labour Party report that Reeves is taking the lead in efforts to reduce trade obstacles with the EU, a task officially overseen by Nick Thomas-Symonds from the Cabinet Office.

Mujtaba Rahman from the Eurasia Group, who closely follows the changes in government Brexit policies, suggests that there is an increasing awareness within the Treasury and other sectors that facilitating easier trade with the EU is one of the few options available to boost economic growth in the medium term.

Along with trying to find ways to enhance economic results, the chancellor also aims to soothe the concerns of business leaders who are still unhappy about the tax increases in her budget.

Our new representative in Washington, Peter Mandelson, who previously served as the EU trade commissioner, probably understands well the potential conflicts that could arise between what the UK might propose to Donald Trump and the chances for rebuilding relationships with the EU.

It's difficult to understand exactly what the UK government is seeking from the EU, which frustrates both Brussels and Labour MPs who support the EU. Stella Creasy, chair of the Labour Movement for Europe, an internal party advocacy group, cautions that "there's a genuine risk of missing out on opportunities if we don't communicate clearly about our needs."

Ministers have consistently emphasized the UK's key boundaries, which involve not rejoining the single market or customs union. They have also reiterated Labour's proposed policies regarding Brexit, including the pursuit of a veterinary agreement and ensuring mutual recognition of professional qualifications.

Even in this situation, those in the UK seem uncertain about what will actually be discussed. Only now is the government appointing someone to act as a mediator with Brussels. The Financial Times has suggested that Michael Ellam, a former Treasury official who is now a senior banker, might take on this role, which is probably a decision that will make his previous department happy.

There are indications that the government might be willing to exceed the requests outlined in the manifesto, as long as it stays within its established boundaries.

However, if the Labour Party aims to advance at the upcoming EU-UK summit scheduled for February and in the future, the EU has clearly expressed its desire to talk about a youth mobility program. Ministers have consistently dismissed this concept, occasionally implying that it would equate to unrestricted movement of people.

Although he previously expressed a desire to revive free movement with the EU, Keir Starmer had valid reasons for excluding it from Labour's policy agenda, which also meant forgoing single market membership.

Worries about uncontrolled migration and its effects on jobs and communities were definitely a key factor in the decision to vote for Brexit, and this issue continues to be very important to voters. However, it’s important to note that a temporary, mutually agreed youth mobility program is not equivalent to unrestricted free movement.

The EU's original suggestion allowed an unlimited number of young people aged 18 to 30 to come for a maximum of four years. However, this is just a starting point; the government could definitely make a case for a more specific approach.

Politicians should be able to come up with a plan that supports young people from the UK in finding apprenticeships, training opportunities, and job placements in the EU. This plan could also include options for those typical wealthy students who want to take a gap year.

However, Starmer has weakened his own position to support this type of plan with his recent statements about immigration, firmly criticizing the Conservatives for conducting an "open borders experiment."

The overall outcome of the existing system in recent years, which included the introduction of health and social care visas to address workforce shortages, has been an unprecedented level of net migration, reaching an astonishing 906,000 last year.

However, the border is certainly not open for everyone. To work in the UK legally, you need to have a sponsoring employer and a specific job offer. Additionally, you'll have to pay a significant visa fee along with an annual NHS surcharge of £1,035. There are also several other requirements that must be met.

The regulations might have been overly relaxed, and we certainly haven't done enough to develop talent domestically. However, it doesn't equate to having an unrestricted immigration policy. By grouping all migrants together, including those brought in to address shortages in the struggling NHS and care industries, and framing it as an "experiment," Starmer is doing a disservice to them.

Labour's deep-seated anxiety about Nigel Farage and Reform has influenced the government's messaging on this issue. However, this fear could complicate things for them in the future if they need to advocate for certain concessions from the EU regarding youth mobility.

In recent weeks, Reeves has taken steps to engage with Europe, signaling a strong intention to advocate for a closer partnership, even if it means displeasing some hardline Brexit supporters within the Conservative Party. In her words, this approach reflects a sense of "maturity."

However, to strengthen its case, the Labour Party must also address its complicated history with immigration.