Labour's push to rejoin the European Union suffered a significant setback today after a senior EU figure warned that Britain would need to adopt the euro. Sandro Gozi, head of the EU-UK Parliamentary Partnership Assembly, also indicated there would be no chance of reinstating the UK's rebate, which previously reduced annual contributions to the bloc's budget by roughly two-thirds.
Gozi's Warning on Euro and Rebate
Mr Gozi's intervention has intensified fears that Brussels is preparing to exploit Labour's eagerness to restore close ties with the EU. As a contest to replace Sir Keir Starmer takes shape, shadow health secretary Wes Streeting declared earlier this month that he wanted the UK to rejoin the bloc. Greater Manchester Mayor Andy Burnham has also backed reversing Brexit, although he is playing down the prospect of it happening soon as he campaigns in the Makerfield by-election against Reform UK.
Sir Keir is hoping to unveil a much closer relationship with the EU at a summit this summer, despite concerns over concessions on adopting Brussels rules, cash contributions, and a youth mobility scheme. However, there have been rumours that the summit, initially scheduled around the 10th anniversary of the Brexit referendum, could be postponed as Brussels waits to see the outcome of the Labour leadership contest.
Fast-Track Re-entry Possible?
Mr Gozi, a French MEP, told The Independent that the UK's re-entry to the EU could be fast-tracked, as it would be seen as a 'victory for Europe'. He said: 'We wouldn't see it as a victory for the EU over the UK - but as a victory for Europe as a whole. It could be done more quickly than for other candidate countries because there is the institutional memory there from when the UK was a member. And there is also already some level of alignment between the UK and EU.'
However, Mr Gozi warned that the UK would need to drop its 'obsession with carve-outs', insisting that would include joining the euro. This condition is likely to be a major obstacle for Labour, as the UK has historically opposed giving up the pound sterling.
Labour's Red Lines
Cabinet minister Darren Jones was asked this morning whether Labour would abandon its objections to free movement to achieve closer ties with the EU. 'We're not abandoning them,' he said. 'We had very clear red lines in our manifesto and we will be sticking to them.' The Labour manifesto ruled out rejoining the EU single market or customs union, but the party has signalled a desire for a closer relationship with the bloc.
The developments come as the UK continues to grapple with the economic consequences of Brexit, with many businesses and trade groups calling for reduced barriers to trade with the EU. However, the prospect of adopting the euro and making significant financial contributions remains deeply unpopular with the British public.
