LONDON, Nov 15(BBC) – The UK must “rebuild relations” with the EU while respecting the 2016 Brexit vote, said Bank of England Governor Andrew Bailey in a recent speech. He highlighted that Brexit has led to weaker trade, particularly in goods, and emphasized the need to seize opportunities to improve ties with the EU. Chancellor Rachel Reeves echoed this sentiment, advocating for a reset in the UK’s relationship with its largest trading partner, though ruling out rejoining the single market or customs union.
Bailey warned that the UK should not only focus on Brexit’s effects but also consider broader geopolitical shocks and global economic fragmentation. He noted that the changed relationship with the EU has weighed on the economy, and stressed the importance of welcoming opportunities to rebuild relations. Meanwhile, economists and politicians have pointed out the challenges and potential benefits of negotiating better trade deals with the EU.
Reeves also addressed the need for regulatory reforms to boost growth, criticizing the current system for being overly risk-averse. She announced plans to merge council pension pots to enable larger investments, despite some criticism. The government aims to publish a financial services strategy in the spring, focusing on fintech, sustainable finance, and other key areas to attract private investment and maintain the UK’s status as a global financial center.
