Bank of England governor calls for UK to 'rebuild relations' with EU
The governor of the Bank of England has said he supports efforts to “rebuild relations” with the European Union, pointing to the consequences of Brexit for the UK economy.
“As a public official I take no position on Brexit per se (…) But I do have to point out consequences,” Andrew Bailey said in a speech to representatives of the British financial community on Thursday evening, adding that the changed relationship with the EU has weighed on the economy.
“The impact on trade seems to be more in goods than services,” he said. “But it underlines why we must be alert to and welcome opportunities to rebuild relations while respecting the decision of the British people [to leave the EU].”
Since coming to power in July, Keir Starmer’s Labour government has repeatedly signalled its desire to establish a “more constructive” relationship with the EU, but has ruled out joining the single market or the customs union or restoring freedom of movement.
"We must be alert to and welcome opportunities to rebuild relations while respecting the decision of the British people"
At the same time, London is seeking to preserve its “special relationship” with the US and is concerned about Donald Trump’s protectionist ambitions following his victory in the presidential election.
Rachel Reeves, the British Chancellor of the Exchequer, also called for a “reset” of the relationship with the EU, the UK’s biggest trading partner.
“We will not undo Brexit or re-enter the single market or the customs union” but “we must recognise that our markets are highly interconnected”, she said at the same event.
Britain's Chancellor of the Exchequer Rachel Reeves listens as Bank of England governor Andrew Bailey delivers a speech in the City of London, 14 November 2024 © PHOTO ISABEL INFANTES / POOL / AFP
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