Calls for Strategic Reset with EU to Unlock Growth and Security
- Sarah-Jayne Gratton
- 29 minutes ago
- 3 min read
In a pivotal move ahead of the upcoming "EU reset" summit on Monday, 19 May, the UK Parliament's Business and Trade Committee (BTC) has released a comprehensive report urging a strategic realignment with the European Union.
The report, titled How to Strengthen UK-EU Relations: Policy Priorities for the Summit, outlines a three-pillar approach aimed at revitalising economic growth and enhancing national security through closer collaboration with the EU.
Key Findings
Drawing from extensive evidence, expert testimonies, and consultations across Europe—including visits to the Northern Ireland border and the World Trade Organization—the Committee's report highlights robust support from business and industry stakeholders for the proposed measures:
95% support for initiatives to reduce border bureaucracy.
Over 90% endorsement for enhanced defence and infrastructure coordination.
Up to 96% backing for deeper collaboration in digital regulation, financial services, and scientific research.
More than 80% strong agreement on establishing a 10-year UK-EU regulatory roadmap for key sectors.
The Case for Reset
The report underscores the economic imperative for a strategic reset:
41% of UK goods exports are directed to the EU, surpassing combined exports to the US, India, and the Indo-Pacific region.
Since 2019, UK goods export growth has stagnated at 0.3% annually, compared to the OECD average of 4.2%.
Advocacy group Best for Britain suggests that "deep alignment in goods could grow UK GDP by 1-1.5%, and the UK and EU can expect a boost in exports of around $20bn while remaining within red lines of no return to the single market or customs union."
Chair's Commentary
Rt Hon Liam Byrne MP, Chair of the Business and Trade Committee, emphasised the urgency of the proposed reset:
“It’s time to face facts. If Britain wants to beat the forecasts and escape stagnation, we don’t need to pray to the bond markets — we need to unlock the Brussels dividend through a strategic reset with our biggest trading partner.
“Today’s report from the BTC is a blunt warning that without a serious reset in our relationship with Europe, Britain will miss its best chance to accelerate growth and bolster security in an increasingly dangerous world. At stake is not only a new opportunity to rebuild our defences - but a huge prize to kickstart UK goods exports which have flatlined since Brexit. This summit is Britain’s opportunity to re-anchor our economic and security strategy in shared strength, not splendid isolation. Government must seize it.”
Recommendations
The Committee's report outlines several actionable recommendations within the existing framework of the UK-EU relationship:
Implement trusted trader schemes and simplified customs declarations to reduce border costs.
Establish a veterinary agreement to minimise friction for food exporters.
Enhance regulatory cooperation in digital sectors, finance, and research.
Forge a UK-EU Defence and Security Pact, granting the UK access to the proposed €150 billion EU SAFE defence fund.
Reset the electricity market to eliminate post-Brexit inefficiencies, which the National Grid estimates are costing UK consumers up to €350 million annually.
Three Pillars for a Reset
The BTC's proposed strategic reset is structured around three core pillars:
Trade and Economic Growth: Reducing trade barriers and fostering regulatory alignment to stimulate economic activity.
Security and Defence Cooperation: Establishing formal mechanisms for joint security initiatives and access to EU defence funds.
Infrastructure and Energy Collaboration: Coordinating on critical infrastructure projects, including offshore wind, subsea cables, and energy interconnectors, to enhance resilience and efficiency.
As the "EU reset" summit approaches, the Committee's report serves as a clarion call for the UK government to engage proactively with the EU, aiming to unlock mutual benefits in trade, security, and infrastructure development.