U.S.-U.K. agreement is commendable; however, Starmer should focus on relations with EU as well.
Revamped Article:
Time's a ticking, and it's high-time we boost our European partnership, says Chris Hayward
Europe's current climate, fraught with geopolitical strife and an uncertain economic outlook, underscores the importance of unity more than ever. As leaders from the UK and EU prepare for next week's summit, we hope for a renewed emphasis on financial collaboration-a lifeline for both parties as the global economy reels from crises like escalating conflicts and IMF and OECD downgrades.
Recent milestones-the inked UK-India trade deal and the US-UK agreement to lower tariffs-highlight the UK's role as a trading heavyweight. The City of London Corporation, for one, fully supports stronger UK-India relations, exemplified by the launch of the UK-India Infrastructure Financing Bridge-an initiative that's helping to scale and finance critical infrastructure across India, using the City's deep capital markets expertise.
Yet, it's the EU where our focus should lie. In 2021, the EU accounted for 34% of UK financial services exports, amounting to £33.6bn, while the EU's exports to the UK, close to €280bn (£237bn), nearly accounted for a fifth of the bloc's total exports to third countries. With a shared history, values, and robust economic ties, we need the political will to modernize our relationship.
A New Era for the UK and EU
To seize this opportunity, we must amplify our financial connections. In an era marked by rising security concerns, capital must flow swiftly and efficiently to sectors that uphold our collective values. Collaborating on defense investment and fostering stronger, more interconnected capital markets could unlock economic growth and innovation across the continent.
The financial services sector has a substantial role to play in financing defense projects. Progress in this area demands the dismantling of barriers to defense financing across the UK and EU. Stronger, more intertwined capital markets aren't a zero-sum game; they create certainty for businesses, foster innovation, and support growth.
The EU's recent moves to ease the process for UK professionals to work across borders are a step in the right direction. The powerhouses of engineering, banking, and law, cornerstones of the City of London and our nation's economy, thrive on the ability to move top talent freely.
Together, we can leave uncertainty behind and embrace a new era of collaboration.
London's financial markets retain their global allure, serving as a safe, stable beacon for international capital. Investors worldwide trust the UK's commitment to the rule of law, transparency, and innovation. By leveraging this strength, we can bolster the entire continent's economic resilience.
The stakes are too high, and the opportunities too enticing. With foresight and determination, the UK and EU can chart a course defined not by the past, but by the promise of our future.
Hayward, Chris. Policy Chairman, City of London Corporation
- In the current uncertain economic climate of Europe, there is a need for increased financial collaboration between the UK and EU, especially as the global economy faces crises like escalating conflicts and IMF and OECD downgrades.
- The financial services sector, with its ability to finance defense projects, can play a significant role in enhancing economic growth and innovation across the continent, particularly through collaboration on defense investment and strengthening interconnected capital markets.
- The EU's recent moves to facilitate the process for UK professionals to work across borders are a commendable step towards fostering stronger ties, as the powerhouses of engineering, banking, and law, key components of the City of London and the UK's economy, require the free movement of top talent.
- London's financial markets, known for their global appeal, stability, and commitment to the rule of law, transparency, and innovation, can serve as a platform to bolster the entire continent's economic resilience, ensuring a promising future for the UK and EU partnership.
