The European Commission has indicated it is willing to discuss closer trade ties with the UK, including a potential customs union, as senior officials meet with British ministers. Valdis Dombrovskis, the EU economy commissioner, told the BBC that the bloc is 'ready to engage with an open mind' on the matter.
The comments come amid growing pressure within the Labour Party for a customs union with the EU, as the government seeks to boost economic growth. Prime Minister Keir Starmer has previously stated that the customs union 'doesn't now serve our purpose very well' but has expressed interest in deeper links with the single market.
However, Dombrovskis implied that the UK cannot pick and choose areas of the single market, noting that full membership requires the 'four freedoms', including freedom of movement. EU insiders maintain that offering special arrangements to the UK would be difficult, as member states must sign up to all policies.
Despite this, the tone from EU officials has been warmer. European Parliament President Roberta Metsola called for a reset in UK-EU relations, stating it is 'time to exorcise the ghosts of the past'. Talks are ongoing on a veterinary agreement, youth exchange programme, and linking emissions trading systems.
Cabinet Office Minister Nick Thomas-Symonds wrote in the Financial Times that a 'ruthlessly pragmatic approach' is needed, while repeating Labour's manifesto promise not to rejoin the single market or customs union. The discussion coincides with EU efforts to revitalise its single market, following a report by former Italian PM Mario Draghi on Europe's slowing economic growth.
