Labour's customs union conundrum looms over party leadership and economic growth
Labour's stance on a potential return to the EU's customs union has sparked renewed debate within the party, with ministers and advisers pushing for a closer relationship with Europe as a means of boosting economic growth. The idea was once championed by former Labour leader Keir Starmer, who had advocated for a customs union in 2018.
However, since his appointment to lead the party, Starmer has signaled that he is not ready to unilaterally commit to rejoining the customs union. His government's economic adviser, Minouche Shafik, initially suggested the idea could be one of the most effective ways to generate growth, but it was later rejected.
In recent weeks, informal discussions within government have centered on rejoining the customs union as a means of stimulating economic recovery, with some arguing that it would have a radical impact on growth. The issue has gained traction due to the government's pressing need for economic growth.
However, there are significant hurdles to overcome before any move is made. Starmer remains committed to his party's "red lines," which include rejecting rejoining the customs union and single market. This stance reflects the party's historic opposition to EU membership, although it has largely become a relic of the past.
The idea that Labour may need to revisit its Brexit stance has gained traction among some senior figures within the government and the pro-EU camp. However, others have expressed caution, pointing out that rejoining the customs union would require significant concessions, including abandoning Britain's independent trade policy and ceding control over tariffs.
Critics argue that Starmer's reluctance to push for a closer relationship with Europe may be driven by party politics rather than economic necessity. They suggest that the public mood has shifted, with many now accepting of a more nuanced approach to EU membership.
The prospects for Labour's rejoining efforts are further complicated by the turbulent domestic politics within France and Germany, which could make it difficult to secure EU support. Nonetheless, some ministers remain convinced that rejoining the customs union is an essential step towards economic recovery.
For now, Starmer appears determined to stick to his red lines, citing a need for "trade-offs" in future negotiations with Brussels. However, behind-the-scenes discussions continue, and Labour's stance on the issue may evolve over time as the party seeks to balance its historic opposition to EU membership with its growing recognition of the economic benefits of closer ties.
Labour's stance on a potential return to the EU's customs union has sparked renewed debate within the party, with ministers and advisers pushing for a closer relationship with Europe as a means of boosting economic growth. The idea was once championed by former Labour leader Keir Starmer, who had advocated for a customs union in 2018.
However, since his appointment to lead the party, Starmer has signaled that he is not ready to unilaterally commit to rejoining the customs union. His government's economic adviser, Minouche Shafik, initially suggested the idea could be one of the most effective ways to generate growth, but it was later rejected.
In recent weeks, informal discussions within government have centered on rejoining the customs union as a means of stimulating economic recovery, with some arguing that it would have a radical impact on growth. The issue has gained traction due to the government's pressing need for economic growth.
However, there are significant hurdles to overcome before any move is made. Starmer remains committed to his party's "red lines," which include rejecting rejoining the customs union and single market. This stance reflects the party's historic opposition to EU membership, although it has largely become a relic of the past.
The idea that Labour may need to revisit its Brexit stance has gained traction among some senior figures within the government and the pro-EU camp. However, others have expressed caution, pointing out that rejoining the customs union would require significant concessions, including abandoning Britain's independent trade policy and ceding control over tariffs.
Critics argue that Starmer's reluctance to push for a closer relationship with Europe may be driven by party politics rather than economic necessity. They suggest that the public mood has shifted, with many now accepting of a more nuanced approach to EU membership.
The prospects for Labour's rejoining efforts are further complicated by the turbulent domestic politics within France and Germany, which could make it difficult to secure EU support. Nonetheless, some ministers remain convinced that rejoining the customs union is an essential step towards economic recovery.
For now, Starmer appears determined to stick to his red lines, citing a need for "trade-offs" in future negotiations with Brussels. However, behind-the-scenes discussions continue, and Labour's stance on the issue may evolve over time as the party seeks to balance its historic opposition to EU membership with its growing recognition of the economic benefits of closer ties.