Bank of England Governor calls on UK ministers to rebuild relations with EU
Date
11/17/2024 4:22:55 AM
(MENAFN) Bank of England Governor Andrew Bailey has called on UK ministers to work on rebuilding relations with the European Union, cautioning that Brexit has had a detrimental effect on the UK economy. Speaking at the Mansion House dinner in London on Thursday, Bailey recognized the negative economic impact of Brexit, particularly in terms of its effect on trade, especially for smaller businesses that export goods. While he did not take a definitive stance on Brexit itself, Bailey emphasized that the process has had substantial consequences, particularly in increasing non-tariff barriers such as customs checks, which have made it harder for UK businesses to export goods.
Bailey's comments are timely, coming as services exports from the UK remain strong despite Brexit. However, goods trade continues to face significant barriers, a situation that has raised concerns for many in the business community. He highlighted that the UK's departure from the EU has created new obstacles that hinder the ease of doing business with European countries, a situation that has weighed heavily on the country’s overall economic performance.
In his remarks, Bailey stressed the importance of seeking ways to improve ties with the EU while still respecting the democratic decision made in the 2016 referendum. His statement reflects a broader shift in political discourse, with some political leaders, such as Labour leader Keir Starmer, advocating for closer cooperation with the EU in areas such as trade, regulatory alignment, and mutual recognition of qualifications.
Despite this willingness to engage with the EU, the Labour Party has ruled out rejoining the EU’s single market or customs union. Instead, it is focusing on securing more limited changes, such as agreements for mutual recognition of professional qualifications and a veterinary agreement that would ease food export checks. These steps aim to smooth the trade process while avoiding a complete reversal of the UK's post-Brexit position.
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