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An Alert to Keir Starmer drawn from His Own History: If You're Not Bold on Britain's EU Exit and Europe, Your Labour Rivals Might Be.

Seven years ago, a mere a short phrase to electrify the party's annual gathering and to show the party was falling out of love with Jeremy Corbyn. Although not precisely soaring oratory, the phrase met with rapturous applause as delegates rose in an impromptu ovation.

When the noise subsided, Keir Starmer, remained at the lectern, visibly startled. He was unaccustomed to his addresses having such an effect. His statement was simply: "Nobody is ruling out staying in the EU". But context is everything.

In that deeply polarized period of 2018, straying from his agreed text like this was inevitably viewed as issuing a challenge to Jeremy Corbyn, who was trying to prioritise leave supporters in working-class seats above the pro-European instincts within Labour. With that single address, this grey-suited opposition Brexit spokesman was transformed – if only for a while – into a risk-taker who championed the party's base against a leader he later succeeded.

The Evolution of Stance & Settled Issues

In the years since, the landscape has shifted, not least to Starmer himself. One of his first acts after taking over in 2020 was declaring the Brexit issue was resolved by the 2019 general election. During the most recent campaign, he repeatedly emphasised unbreakable pledge promises that forbade rejoining the EU, the single market or a customs union.

Like his predecessor, his strategy has focused on winning Brexit-y voters in target constituencies, despite survey data suggests many of them have passed away or shifted opinion.

Pressure Building on Europe

Yet, it’s now the prime minister’s turn to be an embattled Labour leader. And, if EU relations may not be the central crisis in UK politics, the cap which was tightly sealed since Brexit is starting to loosen once more.

Both Starmer and Rachel Reeves have ramped up the rhetoric regarding the damage that leaving the EU has inflicted on the UK’s economy. It’s a useful stick with which to beat Nigel Farage, who seldom discusses his flagship policy was once his singular purpose and is still his only real achievement.

And yet, the scale of the damage, which by some estimates has left Britain with an economy that is between 6% and 8% smaller compared to EU membership, towers over the micro-mitigation so far offered by the government. The PM's much-touted relationship reset agreed with Brussels last summer provides gains quantified in low decimal points.

Cabinet Divergence & Bolder Ideas

The chancellor is among those trying to overcome long-standing interior ministry opposition to an expansive version designed to boost growth program for young people by which young people can move between Britain and Europe for work or study.

The deputy prime minister has pondered publicly regarding the “self-evident” benefits of being in an EU customs pact, as several Labour backbenchers, including the chair of the Treasury select committee, recently voted for a Liberal Democrat motion on joining one.

Although Nick Thomas-Symonds, who oversees UK-EU relations, who is now attending every cabinet meeting, maintains the red lines are still in place, there are ways these could be bypassed. One idea involves declaring the commencement of talks immediately for a more ambitious agreement, to be featured in the following election platform, with implementation only if securing a fresh mandate.

The Prime Minister's Deep-Seated Scepticism

Yet, Starmer has lately been pouring cold water again cautioning that a return to an EU customs arrangement could undermine the trade pacts with America, which he views as key accomplishments of his premiership.

Reportedly that the PM’s scepticism go still deeper, stemming from several key concerns.

  1. Firstly, he thinks a customs pact is now significantly more difficult because his ministers actively diverging from EU regulations across a range of policy areas, like environmental standards.
  2. Second, the prohibitive cost demanded from Britain for entry into a European defense initiative and the ensuing failure of negotiations has convinced UK negotiators that former EU partners have little interest in cutting special deals with Britain than in proving that leaving the EU was a mistake.
  3. Lastly, America's latest security doctrine, praised by the Kremlin, is seen by key advisors in Number 10 as grounds for the UK to keep its distance from Europe.

An Alarming Strategy and Strategic Considerations

This bizarre and terrifying American strategy paper claims Europe faces “civilizational erasure” due to immigration. It includes a single mention to Britain, found on a proposal that the US government may interfere in our politics to foster the growth of “patriotic” parties.

But, far from deciding that this renders the US an unreliable partner, the government is worried that deeper EU integration could upset the global balance by endangering precarious American backing for Ukraine, Nato and much more besides.

Succession Chatter and The Echo from the Past

All of which returns us to the conference of 2018. Starmer has always said that address was not a pitch for the leadership but simply an attempt to preserve the “option” of staying in the EU in a future vote. In fact, in those days, Starmer still favoured a tailored trade agreement of the kind he currently seems to reject.

But it’s not been lost on Downing Street note that the Health Secretary, widely considered would stand for the leadership, is among a clutch of senior ministers letting it be known they desire greater ambition on Europe.

Staff for Angela Rayner, another probable runner in a contest for the top job, maintain she refuses to comment on her position regarding a customs pact because it would only “escalate unhelpful speculation”.

The Clear Risk and A Prudent Memory

The danger is obvious. Should the PM reject significant moves towards EU alignment, he allows rivals to claim the territory where most of Labour MPs, members and voters reside.

It would be prudent of him to remember the impact just a few words had on his career in 2018. Potential pathways for a big offer on Europe which the PM ought to consider; he should explore them himself, rather than letting rivals makes them his – or her – own.

By

Tyler Dunn

A seasoned financial analyst with over 15 years of experience in global markets and portfolio management.

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