Blimey. These are vast, vast sums we are discussing here – which also highlight just how heavy Brexit has weighed on the British economy over the years. On Monday, the UK and the EU are expected to sign a reset deal, marking a significant realignment between the two institutions.
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What is involved in the Brexit reset deal?
There’s plenty on the table. According to weekend reports, the UK will be granted access to the EU’s £150 billion defence procurement scheme. Work is also ongoing to ensure that Brits travelling to the continent can avoid the long passport control queues which have arisen as a result of Brexit.
Crucially, checks on food and agricultural equipment at the border are in line for a substantial reduction, easing the flow of goods across the Channel. Talks will also open the door to the swifter import of energy – which UK representatives say will help to reduce household bills overall.
Reset deal ‘likely to include youth mobility scheme’
There’s more to be hammered out between now and the ratification of this agreement, and it’s understood that Labour will opt-in to rejoin the Erasmus scheme, allowing students from Europe and the UK to freely study overseas. Furthermore, youth mobility packages are also on the agenda.
Though we await further details on what this will encompass, one of the EU’s biggest demands during these discussions was to restore a deal which allowed adults under 30 ‘freedom of movement’ between the Union and the UK. Starmer, it seems, is willing to accept their terms.
Brexit ‘reversal’ forecast to claw-back billions for UK economy
Of course, critics from the right are blasting this as a ‘surrender deal’. But financial analysis from Frontier Economics, who assessed how closer ties to the EU could benefit the domestic economy earlier this year, say that this realignment could be worth up to £25 billion annually for the UK.
It’s estimated that £3 billion of that could come from farm foods exports. Though we’re not quite in ‘rejoin’ territory yet, the PM’s reset deal – marking the third new international trade deal achieved by the government this month – has the potential to undo a lot of the damage caused by Brexit.