{"id":86869,"date":"2025-05-09T08:20:11","date_gmt":"2025-05-09T08:20:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/86869\/"},"modified":"2025-05-09T08:20:11","modified_gmt":"2025-05-09T08:20:11","slug":"bank-of-england-chief-urges-starmer-to-do-everything-to-rebuild-trade-with-the-eu-after-sealing-deal-with-trump-as-tories-warn-brexit-must-not-be-unwound","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/86869\/","title":{"rendered":"Bank of England chief urges Starmer to ‘do everything’ to ‘rebuild’ trade with the EU after sealing deal with Trump… as Tories warn Brexit must NOT be unwound"},"content":{"rendered":"

By JAMES TAPSFIELD, POLITICAL EDITOR FOR MAILONLINE<\/a> <\/p>\n

Published: 04:12 EDT, 9 May 2025 | Updated: 04:17 EDT, 9 May 2025 <\/p>\n

The Bank of England<\/a> governor has urged Keir Starmer<\/a> to ‘do everything’ to bolster trade with the EU.<\/p>\n

Andrew Bailey<\/a> backed deepening relations as the PM pushes ahead with his Brexit ‘reset’ – after sealing a damage limitation deal with Donald Trump<\/a>.<\/p>\n

In an interview with the BBC<\/a>, Mr Bailey stressed that he did not take a position on the UK’s decision to leave the bloc.<\/p>\n

But he said reversing the reduction in trade would be ‘beneficial’ as Britain tries to revive the stalling economy.<\/p>\n

Threadneedle Street moved to cut interest rates from 4.5 per cent to 4.25 per cent yesterday, with concerns about poor growth outweighing the threat of inflation<\/a>.\u00a0<\/p>\n

The PM has been rushing to strike a pact with the US before unveiling new terms with the EU at a summit on May 19.<\/p>\n

There were concerns that could have enraged Mr Trump, who has claimed the bloc was created to ‘screw’ the US<\/a>.<\/p>\n

\"Andrew <\/p>\n

Andrew Bailey backed deepening relations as the PM pushes ahead with his Brexit ‘reset’ – after sealing a damage limitation deal with Donald Trump<\/p>\n

\"Keir <\/p>\n

Keir Starmer and Ursula von der Leyen (pictured last month) are set to agree a new relationship at a summit on May 19<\/p>\n

Rumours have been circling that the Brexit ‘reset’ package will be highly ambitious.<\/p>\n

It could include a youth ‘free movement’ deal and aligning with Brussels food and veterinary standards to reduce trade friction, as well as a security agreement. The French have been pushing for concessions on fishing waters.<\/p>\n

The Tories have warned that Labour must not unwind Brexit or compromise the country’s ability to do a deeper deal with the US.\u00a0\u00a0<\/p>\n

Asked what effect a closer deal with the\u00a0EU would have on the economy and inflation, Mr Bailey pointed out the bloc is the UK’s biggest trading partner.<\/p>\n

‘It would be beneficial, having a more open economy to trade with the European Union. Because there has been a fall-off in goods trade with the EU over recent years,’ he said.<\/p>\n

‘It is important we do everything we can to ensure that whatever decisions are taken on the Brexit front do not damage the long-term trade position. So I hope that we can use this to start to rebuild that relationship.’<\/p>\n

Mr Bailey praised the government’s efforts to strike trade agreements with the US and India this week, suggesting that set an example to other countries.<\/p>\n

\"There <\/p>\n

There are concerns a UK-EU deal could enrage Mr Trump (pictured), who has claimed the bloc was created to ‘screw’ the US<\/p>\n

Your browser does not support iframes.<\/p>\n

He said: ‘It demonstrates that trade deals are important. Trade deals can be done, and the trade is important\u2026<\/p>\n

‘Honestly, it seems an unpromising landscape at times. But I hope that we can use these deals to rebuild the world trading system,’ he said.<\/p>\n

The Bank said yesterday that the original US tariff plans for the UK would have knocked 0.3 percentage points off UK economic growth over the next three years.<\/p>\n

The Monetary Policy Committee also warned that the global economy was set to grow at a slower pace than previously expected due to heightened global trade tensions.<\/p>\n

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