European ministers have made it clear that the United Kingdom will not receive any preferential treatment in its future economic relationship with the European Union, dealing a significant blow to Prime Minister Keir Starmer's ambitions to negotiate a single market for goods. During a meeting on Tuesday, the EU's ministers for Europe expressed a desire for deeper cooperation with the UK, but emphasized that such cooperation must adhere to fundamental principles, including the rejection of any cherrypicking of EU policies, according to three diplomatic sources familiar with the private discussions.
Background of the Proposal
The Guardian revealed last week that the UK government had proposed the creation of a single market for goods between the UK and the EU to Brussels, but the idea was swiftly dismissed by EU officials. This proposal, long hinted at by Starmer and Chancellor Rachel Reeves, would have marked a radical shift for the EU. Since the Brexit referendum nearly a decade ago, EU leaders have consistently maintained that the single market encompasses four fundamental freedoms: the free movement of goods, services, capital, and people.
EU's Stance on the Four Freedoms
EU sources indicated that the ministers had no appetite for the British proposal, which sought to limit free movement to goods only. The idea was briefly mentioned during Tuesday's meeting but received little support. An EU diplomat stated, "Member states reaffirmed the established legal framework underpinning the relationship and negotiations, with continued emphasis on the indivisibility of the four freedoms, balance of rights and obligations, autonomy of EU decision-making, and the avoidance of cherrypicking."
The diplomat added that Maroš Šefčovič, the EU commissioner responsible for UK relations, concluded that "the EU remains united in its ambition to deepen ties, while the UK's red lines are increasingly constraining progress." The European Commission declined to comment on the matter.
France's Offer and Member State Skepticism
France has indicated a willingness to welcome the UK back into the European single market and customs union, reflecting the changed geopolitical landscape since Brexit. EU officials have also stressed that a customs union or alignment with the single market remains an option for the UK. However, some member states remain skeptical about the UK's willingness to accept rules without having a say in their creation. Joining the single market without EU membership would leave the UK without a vote when new regulations are being drafted.
A second EU diplomat remarked that the relationship with the UK is "the best that we have had in a very long time," but added that "the UK still wants to have the cake and eat it." This diplomat noted that EU member states "value and cherish" stable relations and wish to collaborate with the UK, but "this does not mean the UK and the EU are equal partners."
Questions Over Starmer's EU Reset
Questions are mounting regarding Starmer's reset with the EU, as no date has been announced for a long-expected EU-UK summit, tentatively scheduled for 13 July. The summit is intended to finalize a sanitary and phytosanitary (SPS) agreement to ease trade in food, drink, and farm products, an accord on linking emissions trading systems (ETS), and a youth experience scheme allowing young Europeans to work, study, and travel across the UK and the EU. It is also seen as an opportunity to launch a future agenda for cooperation, with both sides interested in deepening ties on defence.
When asked about the future EU-UK relationship, Ireland's Europe minister, Thomas Byrne, told reporters: "We have matters to agree now: the ETS, SPS, and youth experience scheme. Let's focus on them before we get on to any other discussions, which also present difficulties. We certainly want to be as open as possible in the relationship." Regarding the UK's single market for goods proposal, he stated, "It presents challenges."
