Britain is seeking deeper economic and security ties with the European Union as Finance Minister John Healey urges the bloc to avoid excluding British companies from its planned “Made in Europe” industrial policy.
Healey is expected to raise the issue with EU counterparts in Dublin as London seeks closer cooperation with the bloc in technology, defence and manufacturing.
The effort reflects the Labour government’s broader attempt to rebuild economic ties with the EU following Britain’s decision to leave the bloc a decade ago. Since taking office in 2024, the government has pursued closer trading relations with Europe, although several initiatives have faced obstacles.
One example was Britain’s unsuccessful effort to participate in the EU’s SAFE defence funding programme. London ultimately declined to make the financial contribution required to join the scheme.
Stay ahead of the geopolitical week.
MD Briefing delivers expert analysis across five global fronts — the Indo-Pacific, energy, geoeconomics, European security, and the Middle East — every Monday morning. Free.
Healey is expected to urge EU partners to “learn the lessons” from the SAFE negotiations as Britain seeks exemptions from parts of the Made in Europe policy.
Why the policy matters to Britain
The EU initiative is designed to strengthen European industrial capacity and reduce dependence on Chinese components by giving preference to goods manufactured within Europe.
That could have consequences for British manufacturers whose businesses depend on European supply chains.
The British automotive industry is particularly exposed. Around £15 billion worth of British automotive exports are sold into European markets each year, making continued access to EU supply chains an important issue for manufacturers and suppliers.
Healey is expected to argue that new restrictions could create additional barriers for British businesses that remain closely integrated with European production networks.
His intervention also comes as London seeks to broaden cooperation with the EU beyond trade. The British government is pursuing partnerships in areas including technology, defence and manufacturing as it attempts to establish a closer relationship with its largest nearby economic partner.
A possible reset with Brussels
Healey, attending his first EU finance ministers meeting since becoming chancellor in July, is also expected to signal that Britain could support a broader “reset” in relations with Brussels.
According to the Financial Times, however, any agreement would need to demonstrate clear benefits for people in Britain.
The issue highlights the difficulty facing London as it attempts to deepen cooperation with the EU while maintaining the political consequences of Brexit.
Britain wants greater access to European markets and participation in European initiatives, but previous negotiations have shown that closer integration can require financial contributions and commitments that London may be reluctant to accept.
A formal UK EU summit had been postponed from July following the resignation of former Prime Minister Keir Starmer in June.
For Britain, the negotiations over “Made in Europe” will therefore be another test of whether London and Brussels can build closer economic links without reopening the broader political divisions created by Brexit.
With information from Reuters.
