Key facts
- The Liberal Democrats are urging the Labour Party to abandon its current stance on EU relations.
- Lib Dems advocate for the UK to rejoin the EU single market and establish a new customs union.
- Ed Davey, leader of the Lib Dems, will argue that Labour's current 'red lines' are hindering the British economy.
- Rejoining the single market would necessitate accepting free movement of people.
- EU officials have indicated openness to the UK joining the European Economic Area, provided free movement is accepted.
The Liberal Democrats are set to pressure the Labour Party to abandon its current stance on the European Union, advocating for the UK to rejoin the single market and a customs union. Ahead of the 10th anniversary of the Brexit vote, Lib Dem leader Ed Davey will argue that Labour's 'red lines' are contributing to economic stagnation and hindering the UK's relationship with Europe.
Davey plans to call on potential future Prime Minister Andy Burnham and others in Labour leadership to scrap policies that prevent closer economic ties with the EU, even if it means accepting free movement. He will contend that rejoining the European Economic Area, alongside countries like Norway and Iceland, would remove trade barriers and reverse the economic damage attributed to Brexit, which he estimates costs the UK £90 billion annually.
This represents a significant shift for the Lib Dems, who took a more gradual approach in the last election compared to their "stop Brexit" stance in 2019. Labour leader Keir Starmer has confirmed a second EU reset summit for July 22, despite previously promising not to rejoin the EU, single market, or customs union.
EU officials have indicated a willingness to discuss UK entry into the European Economic Area but have ruled out proposals that exclude free movement. Former European Council president Charles Michel emphasized that the single market is "not for sale" and that the UK cannot expect to gain its advantages without adhering to its constraints. He suggested that the EU would react positively if the UK were to seriously consider rejoining.