LONDON — Choosing your Brexit camp was once the preserve of Britain’s Tories. Now Labour is joining in the fun.  Six years after Britain left the EU, a host of loose — and mostly overlapping — groupings in the U.K.’s ruling party are thinking about precisely how close to try to get to the bloc. They range from customs union enthusiasts to outright skeptics — with plenty of shades of grey in between. There’s a political urgency to all of this too: with Prime Minister Keir Starmer tanking in the polls, the Europhile streak among many Labour MPs and members means Brexit could become a key issue for anyone who would seek to replace him. “The more the screws and pressure have been on Keir around leadership, the more we’ve seen that play to the base,” said one Labour MP, granted anonymity like others quoted in this piece to speak frankly. Indeed, Starmer started the new year explicitly talking up closer alignment with the European Union’s single market. At face value, nothing has changed: Starmer’s comments reflect his existing policy of a “reset” with Brussels. His manifesto red lines on not rejoining the customs union or single market remain. Most of his MPs care more about aligning than how to get there. In short, this is not like the Tory wars of the late 2010s. Well, not yet. POLITICO sketches out Labour’s nascent Brexit tribes. THE CUSTOMS UNIONISTS  It all started with a Christmas walk. Health Secretary Wes Streeting told an interviewer he desires a “deeper trading relationship” with the EU — widely interpreted as hinting at joining a customs union. This had been a whispered topic in Labour circles for a while, discussed privately by figures including Starmer’s economic adviser Minouche Shafik. Deputy Prime Minister David Lammy said last month that rejoining a customs union is not “currently” government policy — which some took as a hint that the position could shift. But Streeting’s leadership ambitions (he denies plotting for the top job) and his willingness to describe Brexit as a problem gave his comments an elevated status among Labour Europhiles.  “This has really come from Wes’s leadership camp,” said one person who talks regularly to No. 10 Downing Street. Naomi Smith, CEO of the pro-EU pressure group Best for Britain, added any Labour leadership contest will be dominated by the Brexit question. MPs and members who would vote in a race “are even further ahead than the public average on all of those issues relating to Europe,” she argued. Joining a customs union would in theory allow smoother trade without returning to free movement of people. But Labour critics of a customs union policy — including Starmer himself — argue it is a non-starter because it would mean tearing up post-Brexit agreements with other countries such as India and the U.S. “It’s just absolutely nonsense,” said a second Labour MP.    Keir Starmer has argued that the customs union route would mean hard conversations with workers in the car industry after Britain secured a U.K.-U.S. tariff deal last summer. | Colin McPherson/Getty Images And since Streeting denies plotting and did not even mention a customs union by name, the identities of the players pushing for one are understandably murky beyond the 13 Labour MPs who backed a Liberal Democrat bill last month requiring the government to begin negotiations on joining a bespoke customs union with the EU. One senior Labour official said “hardly any” MPs back it, while a minister said there was no organized group, only a vague idea. “There are people who don’t really know what it is, but realize Brexit has been painful and the economy needs a stimulus,” they said. “And there are people who do know what this means and they effectively want to rejoin. For people who know about trade, this is an absolute non-starter.” Anand Menon, director of the UK in a Changing Europe think tank, said a full rejoining of the EU customs union would mean negotiating round a suite of “add-ons” — and no nations have secured this without also being in the EU single market. (Turkey has a customs union with the EU, but does not benefit from the EU’s wider trade agreements.) “I’m not convinced the customs union works without the single market,” Menon added.  Starmer has argued that the customs union route would mean hard conversations with workers in the car industry after Britain secured a U.K.-U.S. tariff deal last summer, a person with knowledge of his thinking said. “When you read anything from any economically literate commentator, the customs union is not their go-to,” added the senior Labour official quoted above. “Keir is really strong on it. He fully believes it isn’t a viable route in the national interest or economic interest.” THE SINGLE MARKETEERS (A.K.A. THE GOVERNMENT) Starmer and his allies, then, want to park the customs union and get closer to the single market.  Paymaster General Nick Thomas-Symonds has long led negotiations along these lines through Labour’s existing EU “reset.” He and Starmer recently discussed post-Brexit policy on a walk through the grounds of the PM’s country retreat, Chequers. Working on the detail with Thomas-Symonds is Michael Ellam, the former director of communications for ex-PM Gordon Brown, now a senior civil servant in the Cabinet Office. Ellam is “a really highly regarded, serious guy” and attends regular meetings with Brussels officials, said a second person who speaks regularly to No. 10.   A bill is due to be introduced to the U.K. parliament by summer which will allow “dynamic” alignment with new EU laws in areas of agreement. Two people with knowledge of his role said the bill will be steered through parliament by Cabinet Office Minister Chris Ward, Starmer’s former aide and close ally, who was by his side when Starmer was shadow Brexit secretary during the “Brexit wars” of the late 2010s. Starmer himself talked up this approach in a rare long-form interview this week with BBC host Laura Kuenssberg, saying: “We are better looking to the single market rather than the customs union for our further alignment.” While the PM’s allies insist he simply answered a question, some of his MPs spy a need to seize back the pro-EU narrative. The second person who talks regularly to No. 10 argued a “relatively small … factional leadership challenge group around Wes” is pushing ideas around a customs union, while Starmer wants to “not match that but bypass it, and say actually, we’re doing something more practical and potentially bigger.”  A third Labour MP was blunter about No. 10’s messaging: “They’re terrified and they’re worrying about an internal leadership challenge.” Starmer’s allies argue that their approach is pragmatic and recognizes what the EU will actually be willing to accept. Christabel Cooper, director of research at the pro-Labour think tank Labour Together — which plans polling and focus groups in the coming months to test public opinion on the issue — said: “We’ve talked to a few trade experts and economists, and actually the customs union is not all that helpful. To get a bigger bang for your buck, you do need to go down more of a single market alignment route.”  Stella Creasy argued that promising a Swiss-style deal in Labour’s next election manifesto (likely in 2029) would benefit the economy — far more than the “reset” currently on the table. | Nicola Tree/Getty Images Nick Harvey, CEO of the pro-EU pressure group European Movement UK, concurred: “The fact that they’re now talking about a fuller alignment towards the single market is very good news, and shows that to make progress economically and to make progress politically, they simply have to do this.”  But critics point out there are still big questions about what alignment will look like — or more importantly, what the EU will go for.  The bill will include areas such as food standards, animal welfare, pesticide use, the EU’s electricity market and carbon emissions trading, but talks on all of these remain ongoing. Negotiations to join the EU’s defense framework, SAFE, stalled over the costs to Britain. Menon said: “I just don’t see what [Starmer] is spelling out being practically possible. Even at the highest levels there has been, under the Labour Party, quite a degree of ignorance, I think, about how the EU works and what the EU wants.   “I’ve heard Labour MPs say, well, they’ve got a veterinary deal with New Zealand, so how hard can it be? And you want to say, I don’t know if you’ve noticed, but New Zealand doesn’t have a land border with the EU.”  THE SWISS BANKERS Then there are Europhile MPs, peers and campaigners who back aligning with the single market — but going much further than Starmer.  For some this takes the form of a “Swiss-style” deal, which would allow single market access for some sectors without rejoining the customs union.   This would plough through Starmer’s red lines by reintroducing EU freedom of movement, along with substantial payments to Brussels.  But Stella Creasy, chair of the Labour Movement for Europe (LME), argued that promising a Swiss-style deal in Labour’s next election manifesto (likely in 2029) would benefit the economy — far more than the “reset” currently on the table. She said: “If you could get a Swiss-style deal and put it in the manifesto … that would be enough for businesses to invest.”  Creasy said LME has around 150 MPs as members and holds regular briefings for them. While few Labour MPs back a Swiss deal — and various colleagues see Creasy as an outlier — she said MPs and peers, including herself, plan to put forward amendments to the dynamic alignment bill when it goes through parliament.  Tom Baldwin, Starmer’s biographer and the former communications director of the People’s Vote campaign (which called for a second referendum on Brexit), also suggests Labour could go further in 2029. “Keir Starmer’s comments at the weekend about aligning with — and gaining access to — the single market open up a whole range of possibilities,” he said. “At the low end, this is a pragmatic choice by a PM who doesn’t want to be forced to choose between Europe and America.   “At the upper end, it suggests Labour may seek a second term mandate at the next election by which the U.K. would get very close to rejoining the single market. That would be worth a lot more in terms of economic growth and national prosperity than the customs union deal favoured by the Lib Dems.”  A third person who speaks regularly to No. 10 called it a “boil the frog strategy.” They added: “You get closer and closer and then maybe … you go into the election saying ‘we’ll try to negotiate something more single markety or customs uniony.’”  THE REJOINERS? Labour’s political enemies (and some of its supporters) argue this could all lead even further — to rejoining the EU one day. “Genuinely, I am not advocating rejoin now in any sense because it’s a 10-year process,” said Creasy, who is about as Europhile as they come in Labour. “Our European counterparts would say ‘hang on a minute, could you actually win a referendum, given [Reform UK Leader and Brexiteer Nigel] Farage is doing so well?’”  With Prime Minister Keir Starmer tanking in the polls, the Europhile streak among many Labour MPs and members means Brexit could become a key issue for anyone who would seek to replace him. | Tom Nicholson/Getty Images Simon Opher, an MP and member of the Mainstream Labour group closely aligned with Burnham, said rejoining was “probably for a future generation” as “the difficulty is, would they want us back?” But look into the soul of many Labour politicians, and they would love to still be in the bloc — even if they insist rejoining is not on the table now. Andy Burnham — the Greater Manchester mayor who has flirted with the leadership — remarked last year that he would like to rejoin the EU in his lifetime (he’s 56). London Mayor Sadiq Khan said “in the medium to long term, yes, of course, I would like to see us rejoining.” In the meantime Khan backs membership of the single market and customs union, which would still go far beyond No. 10’s red lines.  THE ISSUES-LED MPS Then there are the disparate — yet overlapping — groups of MPs whose views on Europe are guided by their politics, their constituencies or their professional interests. To Starmer’s left, backbench rebels including Richard Burgon and Dawn Butler backed the push toward a customs union by the opposition Lib Dems. The members of the left-wing Socialist Campaign Group frame their argument around fears Labour will lose voters to other progressive parties, namely the Lib Dems, Greens and SNP, if they fail to show adequate bonds with Europe. Some other, more centrist MPs fear similar. Labour MPs with a military background or in military-heavy seats also want the U.K. and EU to cooperate further. London MP Calvin Bailey, who spent more than two decades in the Royal Air Force, endorsed closer security relations between Britain and France through greater intelligence sharing and possibly permanent infrastructure. Alex Baker, whose Aldershot constituency is known as the home of the British Army, backed British involvement in a global Defense, Security and Resilience Bank, arguing it could be key to a U.K.-EU Defence and Security Pact. The government opted against joining such a scheme.   Parliamentarians keen for young people to bag more traveling rights were buoyed by a breakthrough on Erasmus+ membership for British students at the end of last year. More than 60 Labour MPs earlier signed a letter calling for a youth mobility scheme allowing 18 to 30-year-olds expanded travel opportunities on time limited visas. It was organized by Andrew Lewin, the Welywn Hatfield MP, and signatories included future Home Office Minister Mike Tapp (then a backbencher).  Labour also has an influential group of rural MPs, most elected in 2024, who are keen to boost cooperation and cut red tape for farmers. Rural MP Steve Witherden, on the party’s left, said: “Three quarters of Welsh food and drink exports go straight to the EU … regulatory alignment is a top priority for rural Labour MPs. Success here could point the way towards closer ties with Europe in other sectors.”  THE NOT-SO-SECRET EUROPHILES (A.K.A. ALL OF THE ABOVE) Many Labour figures argue that all of the above are actually just one mega-group — Labour MPs who want to be closer to Brussels, regardless of the mechanism. Menon agreed Labour camps are not formalized because most Labour MPs agree on working closely with Brussels. “I think it’s a mishmash,” he said. But he added: “I think these tribes will emerge or develop because there’s an intra-party fight looming, and Brexit is one of the issues people use to signal where they stand.” A fourth Labour MP agreed: “I didn’t think there was much of a distinction between the camps of people who want to get closer to the EU. The first I heard of that was over the weekend.”  The senior Labour official quoted above added: “I don’t think it cuts across tribes in such a clear way … a broader group of people just want us to move faster in terms of closeness into the EU, in terms of a whole load of things. I don’t think it fits neatly.” For years MPs were bound by a strategy of talking little about Brexit because it was so divisive with Labour’s voter base. That shifted over 2025. Labour advisers were buoyed by polls showing a rise in “Bregret” among some who voted for Brexit in 2016, as well as changing demographics (bluntly, young voters come of age while older voters die).  No. 10 aides also noted last summer that Farage, the leader of the right-wing populist party Reform UK, was making Brexit less central to his campaigning. Some aides (though others dispute this) credit individual advisers such as Tim Allan, No. 10’s director of communications, as helping a more openly EU-friendly media strategy into being. For all the talk of tribes and camps, Labour doesn’t have warring Brexit factions in the same way that the Tories did at the height of the EU divorce in the 2010s. | Jakub Porzycki/Getty Images THE BLUE LABOUR HOLDOUTS  Not everyone in Labour wants to hug Brussels tight.  A small but significant rump of Labour MPs, largely from the socially conservative Blue Labour tribe, is anxious that pursuing closer ties could be seen as a rejection of the Brexit referendum — and a betrayal of voters in Leave-backing seats who are looking to Reform. One of them, Liverpool MP Dan Carden, said the failure of both London and Brussels to strike a recent deal on defense funding, even amid threats from Russia, showed Brussels is not serious.   “Any Labour MP who thinks that the U.K. can get closer to the single market or the customs union without giving up freedoms and taking instruction from an EU that we’re not a part of is living in cloud cuckoo land,” he said. A similar skepticism of the EU’s authority is echoed by the Tony Blair Institute (TBI), led by one of the most pro-European prime ministers in Britain’s history. The TBI has been meeting politicians in Brussels and published a paper translated into French, German and Italian in a bid to shape the EU’s future from within.   Ryan Wain, the TBI’s senior director for policy and politics, argued: “We live in a G2 world where there are two superpowers, China and the U.S. By the middle of this century there will likely be three, with India. To me, it’s just abysmal that Europe isn’t mentioned in that at all. It has massive potential to adapt and reclaim its influence, but that opportunity needs to be unlocked.”  Such holdouts enjoy a strange alliance with left-wing Euroskeptics (“Lexiteers”), who believe the EU does not have the interests of workers at its heart. But few of these were ever in Labour and few remain; former Leader Jeremy Corbyn has long since been cast out. At the same time many Labour MPs in Leave-voting areas, who opposed efforts to stop Brexit in the late 2010s, now support closer alignment with Brussels to help their local car and chemical industries. As such, there are now 20 or fewer MPs holding their noses on closer alignment. Just three Labour MPs, including fellow Blue Labour supporter Jonathan Brash, voted against a bill supporting a customs union proposed by the centrist, pro-Europe Lib Dems last month.  WHERE WILL IT ALL END?  For all the talk of tribes and camps, Labour doesn’t have warring Brexit factions in the same way that the Tories did at the height of the EU divorce in the 2010s. Most MPs agree on closer alignment with the EU; the question is how they get there.  Even so, Menon has a warning from the last Brexit wars. Back in the late 2010s, Conservative MPs would jostle to set out their positions — workable or otherwise. The crowded field just made negotiations with Brussels harder. “We end up with absolutely batshit stupid positions when viewed from the EU,” said Menon, “because they’re being derived as a function of the need to position yourself in a British political party.” But few of these were ever in Labour and few remain; former Leader Jeremy Corbyn has long since been cast out. | Seiya Tanase/Getty Images The saving grace could be that most Labour MPs are united by a deeper gut feeling about the EU — one that, Baldwin argues, is reflected in Starmer himself. The PM’s biographer said: “At heart, Keir Starmer is an outward-looking internationalist whose pro-European beliefs are derived from what he calls the ‘blood-bond’ of 1945 and shared values, rather than the more transactional trade benefits of 1973,” when Britain joined the European Economic Community.  All that remains is to turn a “blood-bond” into hard policy. Simple, right?

Britain’s biggest trade union body has called on the Labour government to consider rejoining an EU customs union, reopening a core Brexit fault line as the party grapples with weak growth and rising pressure from its traditional base. In an interview with the Guardian, Trades Union Congress (TUC) General Secretary Paul Nowak said Labour should seek the closest possible economic relationship with the EU to ease trade friction and support household incomes. “The government needs to do whatever it can to build the closest possible positive working relationship with Europe economically and politically … up to and including the customs union,” Nowak said. The U.K. left the EU customs union after the 2016 Brexit referendum, formally exiting the bloc in January 2020 under then-Prime Minister Boris Johnson. Britain remained aligned with EU trade rules during a transition period before fully leaving the customs union on Jan. 1, 2021, when the EU-U.K. Trade and Cooperation Agreement took effect.  The move restored Britain’s ability to strike independent trade deals but introduced customs checks, rules-of-origin requirements and new barriers for exporters. Prime Minister Keir Starmer has so far ruled out rejoining the customs union, framing it as a red line while promising a broader “reset” with Brussels. “We are getting a closer relationship with the EU on a number of fronts, including on trade and the economy,” Starmer told MPs earlier this month, adding: “We have clear red lines in relation to the single market and the customs union.”

LONDON — British students will once again be able to take part in the EU’s Erasmus+ exchange scheme from January 2027 — following a six-year hiatus due to Brexit. U.K. ministers say they have secured a 30 percent discount on payments to re-enter the program that strikes “a fair balance between our contribution and the benefits” it offers. The move is one of the first tangible changes out of Keir Starmer’s EU “reset,” which is designed to smooth the harder edges off Boris Johnson’s Brexit settlement while staying outside the bloc’s orbit. In an announcement on Wednesday Brussels and London also confirmed they were formally beginning negotiations on U.K. re-entry into the EU’s internal market for electricity. Both sides hope the move, which was called for by industry in both sides of the Channel, will cut energy bills while also making it easier to invest in North Sea green energy projects — which have been plagued by Brexit complications. They also pledged to finish ongoing talks on linking the U.K. and EU carbon trading systems, as well as a new food and drink (SPS) deal, by the time they meet for an EU-U.K. summit in 2026. The planned meeting, which will take place in Brussels, does not yet have a date but is expected around the same time as this year’s May gathering in London. The announcements give more forward momentum to the “reset,” which faltered earlier this month after failing to reach an agreement on British membership of an EU defense industry financing program, SAFE. The two sides could not agree on the appropriate level of U.K. financial contribution. The pledge to finalize carbon trading (ETS) linkage next year is significant because it will help British businesses avoid a new EU carbon border tax — CBAM — which starts from Jan. 1 2026. While the tax, which charges firms for the greenhouse gas emissions in their products, begins on Jan. 1, payments are not due until 2027, by which time the U.K. is expected to be exempt. But it is not yet clear whether British firms will have to make back payments on previous imports once the deal is secured, and there is no sign of any deal to bridge the gap. WIDENING HORIZONS EU Relations Minister Nick Thomas-Symonds, who negotiated the agreement, said the move was “a huge win for our young people” and would break down barriers and widen horizons so that “everyone, from every background, has the opportunity to study and train abroad.” European Parliament President Roberta Metsola welcomes British Minister for the Constitution and European Union Relations Nick Thomas-Symonds. | Ronald Wittek/EPA “This is about more than just travel: it’s about future skills, academic success, and giving the next generation access to the best possible opportunities,” he said. “Today’s agreements prove that our new partnership with the EU is working. We have focused on the public’s priorities and secured a deal that puts opportunity first.” The expected cost of the U.K.’s membership of the Erasmus+ program in 2027 will be £570 million. Skills Minister Jacqui Smith said Erasmus+ membership is “about breaking down barriers to opportunity, giving learners the chance to build skills, confidence and international experience that employers value.” Liberal Democrat Universities Spokesperson Ian Sollom also welcomed U.K. re-entry into the exchange scheme but said it should be a “first step” in a closer relationship with the EU. “This is a moment of real opportunity and a clear step towards repairing the disastrous Conservative Brexit deal,” he said. “However while this is a welcome breakthrough, it must be viewed as a crucial first step on a clear roadmap to a closer relationship with Europe. Starting with negotiating a bespoke UK-EU customs union, and committing to a youth mobility scheme for benefit of the next generation.”

BRUSSELS — Cheap packages entering the EU will be charged a tax of €3 per item from next July, the bloc’s 27 finance ministers agreed on Friday. The deal effectively ends the tax-free status for packages worth less than €150. The flat tax will apply for each different type of item in a package. If one package contains 10 plushy toys, the duty is applied once. But if the shipment also contains a charging cable, another €3 is added. The flood of untaxed and often unsafe goods prompted the European Commission to propose a temporary solution for the packages under €150 a month ago. This “de minimis” rule allows exporters like Shein and Temu to send products directly to consumers, often bypassing scrutiny. The EU has already received more packages in the first nine months of 2025 than in the entire previous year, when the counter hit 4.6 billion. French Finance Minister Roland Lescure called it “a literal invasion of parcels in Europe last year,” which would have hit “7, 8, 9 billion in the coming years if nothing was done.” An EU official told POLITICO earlier this month that at some airports, up to 80 percent of such packages arriving don’t comply with EU safety rules. This creates a huge workload for customs officials, a growing pile of garbage, and health risks from unsafe toys and kitchen items. EU countries have already agreed to formally abolish the de-minimis loophole, but taxing all items based on their actual value and product type will require more data exchange. That will only be possible once an ambitious reform of the bloc’s Customs Union, currently under negotiation, is completed by 2028. The €3 flat tax is the temporary solution to cover the period until then. The rising popularity of web shops like Shein and Temu, which both operate out of China is fueling this flood. France suspended access to Shein’s online platform this month. This €3 EU-wide tax will be distinct from the so-called handling fee that France has proposed as a part of its national budget to relieve the costs on customs for dealing with the same flood of packages. Klara Durand and Camille Gijs contributed to this report.

BRUSSELS — Britain’s top Europe minister defended a decision to keep the U.K. out of the EU’s customs union — despite sounding bullish on a speedy reset of ties with the bloc in the first half of 2026. Speaking to POLITICO in Brussels where he was attending talks with Maroš Šefčovič, the EU trade commissioner, Nick Thomas-Symonds said a non-binding British parliamentary vote on Tuesday on rejoining the tariff-free union — pushed by the Liberal Democrats, but supported by more than a dozen Labour MPs — risked reviving bitter arguments about Brexit. Thomas-Symonds described the gambit by the Lib Dems — which had the backing of one of Labour’s most senior backbenchers, Meg Hillier — as “Brexit Redux.” And he accused Ed Davey, the Lib Dem leader, of wanting “to go back to the arguments of the past.” The Lib Dems have drawn support from disillusioned Labour voters, partly inspired by the party’s more forthright position on moving closer to the EU. But Thomas-Symonds defended Labour’s manifesto commitment to remain outside the single market and the customs union. “The strategy that I and the government have been pursuing is based on our mandate from the general election of 2024, that we would not go back to freedom of movement, we would not go back to the customs union or the single market,” the British minister for European Union relations said. Thomas-Symonds said this remained a “forward-looking, ruthlessly pragmatic approach” that is “rooted in the challenges that Britain has in the mid 2020s.” He pointed out that post-Brexit Britain outside of the customs union has signed trade deals with India and the United States, demonstrating the “advantages of the negotiating freedoms Britain has outside the EU.” ‘GET ON WITH IT’ Speaking to POLITICO’s Anne McElvoy for the “Politics at Sam and Anne’s” podcast, out on Thursday, Thomas-Symonds was optimistic that a grand “reset” of U.K.-EU relations would progress more quickly in the new year. The two sides are trying to make headway on a host of areas including a youth mobility scheme and easing post-Brexit restrictions on food and drink exports. “I think if you look at the balance of the package and what I’m talking about in terms of the objective on the food and drink agreement, I think you can see a general timetable across this whole package,” he said. Pressed on whether this could happen in the first half of 2026,  the U.K. minister sounded upbeat: “I think the message from both of us to our teams will be to get on with it.”  The Brussels visit comes after talks over Britain’s potential entry into a major EU defense program known as SAFE broke down amid disagreement over how much money the U.K. would pay for access to the loans-for-arms scheme. The program is aimed at re-arming Europe more speedily to face the threat from Russia. Asked if the collapse of those talks showed the U.K. had miscalculated its ability to gain support in a crucial area of re-connection, Thomas-Symonds replied: “We do always impose a very strict value for money. What we would not do is contribute at a level that isn’t in our national interest.” The issued had “not affected the forward momentum in terms of the rest of the negotiation,” he stressed. YOUTH MOBILITY STANDOFF Thomas-Symonds is a close ally of Prime Minister Keir Starmer and has emboldened the under-fire British leader to foreground his pro-Europe credentials. The minister for European relations suggested his own elevation in the British government — he will now attend Cabinet on a permanent basis — was a sign of Starmer’s intent to focus on closer relations with Europe and tap into regret over a post-Brexit loss of business opportunities to the U.K. Fleshing out the details of a “youth mobility” scheme — which would allow young people from the EU and the U.K. to spend time studying, traveling, or working in each other’s countries — has been an insistent demand of EU countries, notably Germany and the Netherlands. Yet progress has foundered over how to prevent the scheme being regarded  as a back-door for immigration to the U.K. — and how exactly any restrictions on numbers might be set and implemented. Speaking to POLITICO, Thomas-Symonds hinted at British impatience to proceed with the program, while stressing: “It has to be capped, time-limited, and  it’ll be a visa-operated scheme. “Those are really important features, but I sometimes think on this you can end up having very dry discussion about the design when actually this is a real opportunity for young Brits and for young Europeans to live, work, study, enjoy other cultures.” The British government is sensitive to the charge that the main beneficiaries of the scheme will be students or better-off youngsters. “I’m actually really excited about this,” Thomas-Symonds said, citing his own working-class background and adding that he would have benefited from a chance to spend time abroad as a young man “And the thing that strikes me as well is making sure this is accessible to people from all different backgrounds,” he said. Details however still appear contentious: The EU’s position remains that the scheme should not be capped but should have a break clause in the event of a surge in numbers. Berlin in particular has been reluctant to accept the Starmer government’s worries that the arrangement might be seen as adding to U.K. immigration figures, arguing that British students who are outside many previous exchange programs would also be net beneficiaries.  Thomas-Symonds did not deny a stand-off, saying: “When there are ongoing talks about particular issues, I very much respect the confidentiality and trust on the ongoing talks.”  Britain’s most senior foreign minister, Yvette Cooper, on Wednesday backed a hard cap on the number of people coming in under a youth mobility scheme. She told POLITICO in a separate interview that such a scheme needs to be “balanced.” “The UK-EU relationship is really important and is being reset, and we’re seeing cooperation around a whole series of different things,” she said. We also, at the same time, need to make sure that issues around migration are always properly managed and controlled.” A U.K. official later clarified that Cooper is keen to see an overall cap on numbers. BOOZY GIFT As negotiations move from the technical to the political level this week, Thomas-Symonds sketched out plans for a fresh Britain-EU summit in Brussels when the time is right. “In terms of the date, I just want to make sure that we have made sufficient progress, to demonstrate that progress in a summit,” Nick Thomas-Symonds said. “I think that the original [post-Brexit] Trade and Cooperation Agreement did not cover services in the way that it should have done,” he added. “We want to move forward on things like mutual recognition of professional qualifications.” Thomas-Symonds, one of the government’s most ardent pro-Europeans, meanwhile told POLITICO he had forged a good relationship with “Maroš” (Šefčovič) – and had even brought him a Christmas present of a bottle of House of Commons whisky. “So there’s no doubt that there is that trajectory of closer U.K.-EU cooperation,” he quipped. Dan Bloom and Esther Webber contributed reporting.

LONDON — Keir Starmer is promising British voters he’ll fix the Brexit-shaped hole in the U.K. economy, but Brussels appears to have quite enough on its plate. Days after Britain’s grim growth prospects were laid bare in the U.K. budget, the country’s PM gave two speeches promising closer ties with the European Union and elevated his EU point person, Nick Thomas-Symonds, to the Cabinet. “We have to keep moving towards a closer relationship with the EU, and we have to be grown-up about that, to accept that that will require trade-offs,” Starmer said on Monday.   But European leaders are already grappling with packed in-trays as they look for an end to Russia’s war in Ukraine and confront their own domestic economic challenges — and skepticism remains as to how much room for maneuver the British PM actually has.  Starmer’s political red lines — no customs union, no single market, and no return to freedom of movement — remain in place, and ministers continue to stress that a return to full EU membership remains off the table. Even Starmer’s existing EU “reset” agenda — which aims to walk back some of the harder edges of Boris Johnson’s Brexit settlement — is not all going to plan. A push to join the EU’s SAFE loans-for-arms scheme crashed last week after the two sides failed to agree on how much money the U.K. would pay. “The same ‘how much should the U.K. contribute?’ question has been slowing down the actual implementation of basically all the reset topics,” said one EU diplomat who was not authorized to speak on the record. Despite plenty of talk in London about closer ties, the forum for putting fresh topics on the agenda would be the EU-U.K. summit that is due next year. But a date has yet to be set for that gathering. “Nobody is talking about the next summit here yet. I’m not saying it isn’t going to happen, it’s just a question of bandwidth,” another EU diplomat said. “For us the focus now is to work through our existing commitments and finalize those deals, start implementing them and then showing that the deals are bringing value. That takes time,” a third diplomat said. LIMITED SCOPE  The problem for Starmer is that his existing plan to rebuild EU ties is unlikely to move the dial on U.K. economic growth. Economists at the Centre for European Reform reckon that the government’s reset package — if delivered in full — is worth somewhere between 0.3 percent and 0.7 per cent of U.K. GDP over a decade.   Meanwhile, academics at the Bank of England and Stanford University calculate that the economic hit from Brexit could be as high as 8 percent of GDP over a similar period. “It is striking how frequently the chancellor and prime minister will now lament the costs of Brexit, without making any suggestions on how to change the status quo,” said Joël Reland, research fellow at the U.K. In A Changing Europe think tank.  “This could be read as a slow creep towards a breach of their red lines, but I suspect it is mostly about domestic political management. They are in a sticky economic situation and Brexit is a convenient thing to blame. I don’t think they’d be brave enough to risk a manifesto breach on Brexit, but I’d be surprised if ‘no single market or customs union’ is in the 2029 manifesto,” Reland said.  One British government official stressed that Labour’s red lines remain in place — but added: “We don’t think we’re at those red lines yet.”  BREAKING THE TABOO  Labour’s previous reluctance to talk about Brexit was born of a fear of upsetting Leave-leaning swing voters whom the party wanted to win over in the last election.  But that started to change over the summer.  Thomas-Symonds, the minister in charge of delivering the reset, went on the attack in a speech hosted by the Spectator, a right-wing magazine. Parties pledging to reverse Starmer’s reset were offering “more red tape, mountains of paperwork, and a bureaucratic burden,” he argued. To the surprise of Downing Street aides, the attacks landed well and drew a line between the government’s agenda and that of Reform UK boss Nigel Farage — the longstanding Brexiteer dominating in the polls — and Conservative Leader Kemi Badenoch.  It emboldened Starmer and his lieutenants. Rachel Reeves, the U.K.’s chief finance minister, used her speech at the Labour Party conference in Liverpool to talk up the benefits of improved cross-border mobility for the economy.   Ahead of last week’s difficult budget stuffed with tax rises, she waded in further, damning the effects of a “chaotic Brexit.” While the new rhetoric has yet to be backed up by a shift in policy, there are signs that some of Starmer’s close allies are starting to think bigger.  Rejoining the EU customs union was reportedly raised as an option by Starmer’s economic advisor ahead of the budget — but was rejected. “There are definitely people who have been pushing at this for a long time,” one person with knowledge of conversations in government said.  “I don’t think that will be that surprising to people, because if your primary goal allegedly is growth then that’s one of the easiest levers you can pull. Most economists would agree — it’s the politics that’s stopping it.”  Pressed on the prospect of Britain’s applying to rejoin the customs union on Wednesday, Health Secretary Wes Streeting did not explicitly rule out the idea but stressed the government’s policy was about “new partnerships and new relationships, not relitigating the past.” If Starmer opts for a risky manifesto-busting push to rejoin the customs union, diplomats say even that is unlikely to be a quick fix for the British PM.  “It would take time. Just consider how slow has been so far the progress on SPS, ETS and Erasmus,” the first diplomat quoted above said. “As of now, the U.K. needs the EU to spur its growth, not the other way around.”

LONDON — For Britain’s government, it’s a no-go. For the Greens’ new leader Zack Polanski, it’s a must. The end of free movement of people with the EU has been a “disaster” for the U.K. that should be urgently reversed, Polanski told POLITICO — in his first major intervention on EU policy. Elected leader of the left-wing environmentalist party last month, Polanski’s brand of “eco populism” is already cutting through with some voters. POLITICO’s polling average shows his party steadily climbing to 13 percent — more than double the 6 percent they won in last year’s general election. One outlier even shows them drawing level with Labour. While Polanski — a relative outsider who sits in London’s regional assembly rather than Westminster — has so far cut through by focusing on domestic policy, inequality and the cost of living, he’s now setting out his stall on Europe. Though Labour Prime Minister Keir Starmer has sought to reset relations with the EU, he’s done so within tight red lines designed to appeal to Brexit supporters: no re-entry to the single market, no rejoining the customs union, and absolutely no return to freedom of movement. Polanski has no such qualms, and he’s not impressed with the prime minister’s caution. “It all feels a little bit ‘meh,’ for want of a better description,” he told POLITICO of Starmer’s reset so far. “It doesn’t really feel like he has any kind of passionate vision of what the future looks like, or any real direction that he’s driving it in. He doesn’t really have a vision for this country. So how is he going to have a vision of what the future of Europe looks like?” ‘DISASTER’ In particular, the Green leader is unapologetic about a return to free movement of people — which ended in 2021. It’s an issue most politicians in Westminster won’t go anywhere near for fear of landing on the wrong side of voters annoyed about immigration. “The restriction on free movement has been a disaster,” he said, adding that it should be in the “first phase” of any rapprochement. “It’s interesting to see [Nigel Farage’s party] Reform banging on about immigration, but we know immigration has risen since Brexit. “It’s just risen from countries outside of Europe. So even on its own terms, Reform and the Brexit Party’s own project was a disaster by their own criteria. And I think free movement is really important, both for our citizens and citizens around Europe.” Though Keir Starmer has sought to reset relations with the EU, he’s done so within tight red lines designed to appeal to Brexit supporters. | Stefan Rousseau/PA Images via Getty Images Net migration to the U.K. was 431,000 in 2024 — significantly higher than rates in the 2010s when numbers were typically between 200,000 and 300,000. But despite welcoming more newcomers than ever, Brits have lost their right to move abroad within the EU. Polling commissioned by POLITICO shows voters aren’t impressed with the new system and are open to turning back the clock, if somewhat disinterested in the policy detail. Starmer’s EU reset, primed at a summit in May this year, involves negotiating a new agrifood deal with the EU to smooth trade in food, closer cooperation on energy, and a “youth experience” scheme that doesn’t restore free movement but would give a capped number of young people time-limited visas to live abroad. Polanski, however, thinks the government should go further on building ties with the EU in other areas. “I think rejoining the customs union is something we should be doing as soon as possible,” he said. “It’s just resulting in higher prices for people.” It’s a policy also backed by the opposition Liberal Democrats, with whom the Greens are bidding for disillusioned Labour voters. As for rejoining the bloc altogether? “Over longer term, absolutely we should be rejoining the European Union. But we’ve got to make sure that that conversation is a conversation all the public’s involved with. I think one of the reasons Brexit happened is because so many people feel like politics is done to them rather than with them,” he said. “I think Brexit was a catastrophic decision. I think it’s also important that politicians listen to the fact that the public made that decision, and I believe they made that decision because of the lack of investment in their communities and need and want of something different. I think you’d be hard pressed to find anyone, though, who thinks that was a right decision that has made our communities any wealthier.” INTERNATIONALISM The Green leader told POLITICO that “really grim” plans by the Tories and Reform to leave the European Convention on Human Rights show “the slow march towards fascism that this country is on.” But he said the rightward drift across Europe is a reason to get stuck in, not to hang back. “I think there’s some really worrying trends across Europe, particularly around the far right, and we’re seeing the beginnings of some of those trends in our own country. I think any political party has a decision to make, which is: Do you stay isolationist and out of Europe and say, ‘Well, you know, they’re going right wing, so we’re not going to get involved.’ “Or do you say actually: International and indeed, socialist solidarity looks like working with left-wing or progressive movements across Europe in ways that look to reform Europe; to make sure that the entire project is moving in a direction that ultimately protects people’s freedom, protects the poorest communities across Europe, and is the best thing for our country, too.”

LONDON — British businesses trading with Europe face “more red tape, mountains of paperwork, and a bureaucratic burden” if the U.K.’s opposition parties tear up Keir Starmer’s new Brexit reset deal, a government minister will warn Wednesday. In a speech in Westminster, Nick Thomas-Symonds, who has been leading talks with Brussels for improved trade terms, will accuse Nigel Farage’s Euroskeptic Reform UK party of wanting “to take Britain backwards” by tearing up the deal.  Farage and Tory opposition leader Kemi Badenoch have both pledged to junk Starmer’s changes to Boris Johnson’s Brexit settlement if they make it into government at the next election. Reform UK is currently leading Labour in the polls and on course for a majority in the House of Commons.  In extracts of the speech pre-briefed to journalists, Cabinet Office Minister Thomas-Symonds says Reform UK’s pledge means “cutting at least £9 billion from the economy, bringing with it a risk to jobs and a risk of food prices going up.” Reform UK in turn accused Labour of “cosying up” to the EU. Thomas-Symonds will claim that reversing the reset will risk investment in the food and drink sector, make exporting more difficult for farmers and fishers, as well as other small business owners, and see food once again rot in the back of lorries stuck in 16-hour queues.  Senior figures in the Labour government see fast delivery on EU trade as key to their pitch at the next general election. They want the British public to start seeing the benefits of the new agreements through lower supermarket prices before the run-up to the contest.  Key to this is the sanitary and phytosanitary deal, talks on which are set to start in the fall. The agreement has been broadly welcomed across the food and drink and agriculture sectors. But Euroskeptics are angry that it’ll tie the U.K. to Brussels.  Thomas-Symonds is expected to say he wants the SPS agreement to be operational by 2027. He’ll also recommit the government to Labour’s red lines of no return to the EU’s Customs Union or Single Market. On Tuesday the British government published new data which it says illustrates the scale of bureaucracy businesses face and the potential benefits of an SPS agreement: The Animal Health and Plant Agency issued 328,727 export health certificates in 2024. The certificates cost as much as £200 each.  A Reform UK spokesman shot back in a statement: “Cosying up to the EU and leaving us entangled in reams of retained EU law which Kemi Badenoch failed to scrap will not resuscitate Britain’s struggling economy.”

LONDON — Britain and the EU have agreed a fresh Brexit deal that will see Gibraltar open its borders with Spain, abolish passport controls with the EU, and join the EU customs union. The British Overseas Territory will effectively join the EU’s Schengen passport-free area for the first time — meaning smoother crossings for the 15,000 people who commute across its borders daily. Speaking in Brussels on Wednesday, EU Trade Commissioner Maroš Šefčovič described the agreement as a “truly historic milestone” that would remove “all physical barriers, checks and controls on people and goods” crossing the border while bringing legal certainty. Gibraltar’s government has sought such a deal for years — complaining that border crossings have become more onerous since Brexit, to the detriment of people living and working in the territory. Spanish Foreign Minister José Manuel Albares said the agreement meant that “the last wall on continental Europe” would disappear and free movement of people would reign. THE SHAPE OF THE DEAL To protect the integrity of the Schengen area, EU border controls will operate alongside British controls at the Rock’s airport — in a setup similar to the “juxtaposed controls” operating at London St Pancras Eurostar station. The territory has also made some concessions on taxation — notably on its very low tobacco levies. Albares said the “tax convergence process” would “ensure everyone is treated fairly.” While the deal includes a specific clause stating that it has no impact on the territory’s British sovereignty, it is unlikely to be welcomed by Euroskeptics back in the U.K. — for some of whom the territory is an emotive subject. Asked whether EU border guards would be able to stop British nationals from entering the British Overseas Territory, the Spanish foreign minister said: “Of course the European agent — that in this case is the Spanish police — will guarantee the full integrity of the Schengen area.” In a written statement issued on Wednesday afternoon, U.K. Foreign Secretary David Lammy said the situation his party inherited from the last government — which was in the process of negotiating a similar agreement — had put “Gibraltar’s economy and way of life under threat.” He said the deal would deliver “a practical solution after years of uncertainty.” Meanwhile, Fabian Picardo, Gibraltar’s chief minister, said he was “delighted” with the agreement in principle. “I have worked hand in glove with the U.K. government throughout this negotiation to deliver the deal Gibraltar wants and needs — one that will protect future generations of British Gibraltarians and does not in any way affect our British sovereignty.” Both sides will now get to work turning the political agreement in principle into a legal text. Asked whether he believed the deal would be ratified, Šefčovič said he was “absolutely convinced.”

LONDON — Keir Starmer wants to reset relations with the European Union. At a summit in London Monday, he’ll finally break ground on the first phase. WHAT’S HAPPENING? European Commission President Ursula von der Leyen, European Council President António Costa and the EU’s top diplomat Kaja Kallas are meeting the British prime minister in London for a long-awaited U.K.-EU summit. The forum was first mooted in October 2024 when Starmer traveled to Brussels to kick off his “reset.” The main outcome of that meeting was an agreement to hold more meetings — specifically, “regular” U.K.-EU summits to use as a framework for improving cross-Channel relations and reforming or building on the Brexit settlement. This is the first one. It’s mostly about getting talks rolling on a range of issues over the coming months, but some concrete outcomes are expected as well. A No. 10 Downing Street official said late Sunday: “Negotiations are going down to the wire and a deal is not yet done. There are some outstanding issues on both sides and conversations will continue overnight.”  WHAT’S ON THE TABLE? As a baseline, officials working on preparations for the summit expect three main things out of the meeting: a security pact, a declaration on global issues, and a “common understanding” of future topics to be negotiated. European Commission President Ursula von der Leyen, European Council President António Costa and the EU’s top diplomat Kaja Kallas are meeting the British prime minister in London for a long-awaited U.K.-EU summit. | EPA-EFE/Olivier Matthys Security is seen in both capitals as the least controversial aspect of the reset and so a good place to start, though which specific measures will make it into any agreement is yet to be nailed down. The accord is likely to create more “structured dialogues” of the kind beloved in Brussels — official forums for the EU and U.K. to discuss cooperation and strategy. There are also likely to be measures to make it easier for defense industries to cooperate across the Channel. Britain wants access to more EU security databases, too, though it remains to be seen whether it’ll be successful. Asked if the security and defense agreement would ensure Britain access to EU+ weapons procurement programs, one EU diplomat said: “Potentially yes, it would let in Britain to weapons procurement deals. If not, we would have still have [the] SAFE [rearmament fund]. If we do not get an agreement unexpectedly, we could still include SAFE into the wider deal. There are diplomatic safeguards.” While this agreement is widely anticipated, some diplomats believe it isn’t an absolute certainty. That is, in part, due to fishing. More on that below. DEADLINES Both sides are also keen to use the meeting to address looming deadlines on energy and fishing — where existing arrangements in former PM Boris Johnson’s Brexit deal are set to expire next year. Some EU member countries, notably France, are keen to link progress on fisheries to unlocking other aspects of the talks, though they’ve been coy in public about their exact demands. The EU is effectively seeking an extension of the current — very favorable — arrangements for fishing in British waters for multiple years. If one isn’t agreed, access would have to be negotiated on an annual basis, which would be a pain for EU fleets and would hand the U.K. recurring leverage. London, by contrast, is seeking to avoid headlines that the British government has once again sold out its fishing industry. It’s a tricky balance for Starmer. Energy is slightly different. Like fishing, the agreement struck by Johnson expires in June 2026. On this topic, though, neither side really likes the current arrangements — which are clunky, inefficient, and accused of holding back investment in the North Sea and raising prices for consumers. Both sides want to replace it with something better. But it’s not clear whether that will be done in one fell swoop at Monday’s summit, or put on the to-do list. FUTURE TALKS The “common understanding” of future topics is where the biggest remaining issues raised in the run-up to the summit are likely to end up. Think: a youth mobility agreement, a sanitary and phytosanitary agreement, and linkage of emissions trading systems. Electricity trading could find itself there too, as could items like the mutual recognition of professional qualifications and improved conditions for touring artists on the continent. Some EU member countries, notably France, are keen to link progress on fisheries to unlocking other aspects of the talks, though they’ve been coy in public about their exact demands. | EPA-EFE/Malton Dibra What finally makes it into this package will set the agenda for relations for the rest of the year, ahead of a scheduled review of the Brexit trade deal. This isn’t a formal deal as such and doesn’t mean the policies name-checked are guaranteed to happen. Instead, it’s a to-do list of plausible areas where both sides think cooperation could be enhanced within the framework of the existing Trade and Cooperation Agreement. Expect this area to be heavily scrutinized — and a measure of how ambitious Starmer’s reset will really be. THE POLITICAL PITFALLS The summit takes place against a difficult political backdrop for Starmer. A YouGov poll released Friday saw his approval ratings fall to an all-time low of -46, a 12-point drop in the space of a month. This was largely driven by a whopping 34-point monthly drop among Labour voters. His Labour Party now consistently tails Nigel Farage’s Euroskeptic Reform outfit in the polls. Reform voters, constantly wooed by Labour, detest the prime minister, with just 2 percent having a positive opinion of Starmer compared to 96 percent with a negative view — down a further five points on last month. Whether Starmer uses the opportunity to lean into an ambitious reset in the hope of restoring public trust, or shies away from anything too bold, will become clear Monday. Opposition parties smell an opportunity. The pro-European Liberal Democrats — to whom, along with the Greens, Labour is bleeding more voters than it is losing to Reform — are urging Starmer to go further and join an EU customs union. The Tories, who are struggling for airtime, have pledged to rip up any deal that crosses their tight red line the second they return to government. Reform vows to hammer Starmer on immigration if he signs up to a youth mobility scheme. WHERE AND WHEN? The summit will take place at Lancaster House, a five-minute walk from Downing Street. It’ll be largely a morning event. Expect it to be topped off with a press conference before lunchtime.