The United Kingdom has raised the prospect of creating a single market for goods with the European Union as part of Sir Keir Starmer's efforts to reset relations with the bloc. Officials reportedly suggested the idea to Brussels as a means of improving ties, according to recent reports.
EU Rejects Proposal
However, the European Union is said to have rejected the proposal, instead suggesting a full customs union or economic alignment under the European Economic Area (EEA), according to The Guardian. The EEA comprises a single market of 30 mostly EU countries, but would also require accepting free movement of people, which is a Labour red line.
Brexit Concerns
The prospect will alarm those who supported Brexit amid fears that Labour is attempting to rejoin the EU. Rejoining the single market or the customs union would breach Labour's manifesto red lines. This embarrassing revelation comes as the embattled Prime Minister tries to shore up his legacy in the time he has left in office.
Sir Keir's likely challenger for the leadership, Wes Streeting, has stated he wants to rejoin the EU, as did Andy Burnham last year. During recent visits to Brussels, the Cabinet Office's top official on EU relations, Michael Ellam, suggested the idea to Brussels, according to the report.
Ongoing Discussions
UK government sources told the paper that the EU had not definitively rejected a single market for goods and said it was among a range of options being discussed before a summit tentatively pencilled in for July 13. The UK and EU have not yet agreed on an agenda to be launched at the summit.
Both sides hope to strike sector-by-sector deals to ease trade in food and drink as well as emissions. They also hope to break the deadlock over a youth mobility programme. Both the Prime Minister and Chancellor have said they are keen to explore alignment on goods. Rachel Reeves has stated there is 'a strategic imperative for deeper integration between the UK and EU - in our shared need for greater economic resilience'.
A Cabinet Office spokesman said: 'We have previously confirmed that the next UK-EU summit will be held this summer. A final date will be confirmed in due course.'
