- Chancellor sets out how closer alignment with EU will drive
economic growth.
- Argues deeper European partnership is strategically essential
in unstable world.
- Calls for joint defence industrial base to meet shared
security threats together.
The biggest prize for Britain's growth comes through deeper
integration with the EU, Chancellor has said this
evening.
Setting out the government's case for closer economic and
security ties with its nearest neighbours at an event at the
London School of Economics, the Chancellor
said:
“The biggest prize is clearly with the EU. The truth is economic
gravity is reality. Almost half of our trade is with the
European Union. We trade almost as much with the EU as
the whole of the rest of the world combined.
“There are three big trading blocs in
the world – there's the US, there's China, and
there is Europe. We want to make Europe as strong as
possible, and that means not putting up the
drawbridge.”
With global trade facing increasing fragmentation, Reeves made
clear that Britain would resist the turn towards protectionism
and instead seek to bring down barriers to trade with
trusted partners. This includes the EU, with the Chancellor
confirming that Britain will align with EU regulatory standards
where it is in its national interest, removing barriers to trade
and giving businesses the confidence to invest.
The resetting of relationships with the EU is a central pillar of
the Chancellor's securonomics approach to build
resilience through stability, investment and reform at home while
tearing down barriers to trade abroad.
While Britain is pursuing stronger trade relationships across the
globe – with India, through CPTPP, and with the United States -
proximity matters in trade, and in security. The Chancellor
therefore also made the strategic case for closer cooperation
with Europe on defence, arguing that Britain's security is bound
to that of its neighbours.
Chancellor said:
"I strongly believe that Britain's future is inextricably bound
with that of Europe's – for economic reasons, but also reasons of
security, resilience and defence.
“On defence, we don't want to create more barriers. We
want to be bringing those barriers down. We want to greater
integrate supply chains, not damage them by taking a sort of
inward-looking approach.
“But I don't think any Chancellor actually
believes we are getting the value for money that we should.
Things like interoperability, joint procurement, not every
country in Europe having different specifications
when they're buying equipment – the potential there is
huge.”
The Chancellor was speaking at an event on security in Europe
held by Brussels-based economic think tank Bruegel to mark its
20th anniversary.
