Rachel Reeves set to attend meeting of EU finance ministers

Rachel Reeves set to attend meeting of EU finance ministers

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UK chancellor Rachel Reeves is aiming to attend a meeting of EU finance ministers before the end of the year, as Labour seeks to widen co-operation with the bloc in a range of areas including economic policy. 

The arrangements are still under discussion, according to people familiar with the matter, but officials see the anticipated meeting as a sign of the UK’s improving relations with the EU, as the two sides attempt to reboot their relationship since Labour took office. 

A meeting of EU finance ministers covering the Eurozone is scheduled for December 9 in Brussels, providing a potential date for Reeves.

Dialogue with the Eurogroup is expected to focus on developments in the UK and broader European economy, and areas of common interest, including the G7 agenda and the EU’s financial support for Ukraine. 

But the meeting is not expected to focus on Labour’s attempted reboot of UK-EU trade relations, people familiar with the plans said.

Senior non-EU figures occasionally attend meetings of the Eurogroup, which typically take place once a month.

Last October, the Eurogroup met in an “inclusive format” including all 27 EU ministers, when US Treasury secretary Janet Yellen was present.

British chancellors used to participate in meetings of the pan-EU Ecofin group of finance ministers, rather than the narrower Eurogroup, until the UK left the bloc in 2020.

Reeves’s expected meeting with EU finance ministers comes as UK Prime Minister Sir Keir Starmer prepares for talks on Wednesday with European Commission President Ursula von der Leyen, which he hopes will “reset” relations with Brussels.

The EU-UK economic dialogue has suffered since Brexit, as discussions between the two sides became dominated by the complex and acrimonious debate about the implementation of the UK’s exit deal from the bloc. 

But the two sides have in recent years stepped up co-operation in security areas such as sanctions policy and aid for Ukraine.

Reeves had a meeting with the Irish president of the Eurogroup, Paschal Donohoe, in London at the beginning of September. 

Speaking at the City of London’s Guildhall later that day, Donohoe said he hoped the recent first steps taken to rebuild trust between the UK and EU turned into a “steady walk”. 

“It is really welcome that we have moved on to a new footing in our relationship which allows us to exchange views on these important topics for our citizens and businesses,” he said in his speech. 

Brussels and London established an EU-UK financial regulatory forum last year as a platform for a regular dialogue.

Starmer has had a number of meetings with EU counterparts including German chancellor Olaf Scholz and Italy’s prime minister Giorgia Meloni. 

Home secretary Yvette Cooper will have talks with the outgoing EU home affairs commissioner Ylva Johansson on the sidelines of a G7 meeting in Italy on Thursday.

But Labour faces a struggle to show tangible benefits from its heightened engagement with the EU, given the formidable barriers that exist to a deeper economic relationship. 

Financial services are not covered by the post-Brexit free trade agreement and the UK has repeatedly ruled out joining the EU single market or customs union. 

A spokesperson for Donohoe said the Eurogroup was committed to building a “strong working relationship in the time ahead”, adding: “At this stage concrete ways to follow up on this are being considered.”

The Treasury said: “As part of the wider reset with the EU, we will continue to engage with EU countries and the commission to see an improved trade and investment relationship to support businesses, create jobs and help grow the UK economy.

“We do not give a running commentary on the chancellor’s diary.”

Additional reporting by Peter Foster in London