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A Warning to Keir Starmer drawn from His Personal Past: Without Boldness on Brexit and the EU, Your Party Challengers Will Be.

Seven years ago, a mere eight words to energize the party's annual gathering and to show Labour was falling out of love with its then leader. Although not precisely soaring oratory, the words met with rapturous applause as most of the hall stood for an impromptu ovation.

When the noise subsided, Keir Starmer, remained at the lectern, visibly startled. He wasn't really accustomed to his addresses having such an effect. His statement was simply: "Nobody is ruling out staying in the EU". Context, however, is key.

During that deeply polarized period in 2018, straying from the prepared script like this was inevitably viewed as laying down the gauntlet to the party leader, who sought to prioritize leave supporters in key constituencies above the pro-European instincts within Labour. In just one speech, this grey-suited shadow Brexit secretary was transformed – albeit temporarily – into a political gambler who would stand up for the party's base against the leadership he would later replace.

The Evolution of Stance & Closed Debates

Since then, the landscape has shifted, not least to Starmer himself. An early move after taking over in 2020 was declaring the EU question was resolved by the 2019 general election. During the most recent campaign, he consistently stressed unbreakable pledge promises that forbade rejoining the European Union or its core structures.

Like his predecessor, the PM's approach has focused on winning pro-Leave voters in key seats, even if polling evidence suggests many of them have died or changed their minds.

Pressure Building on the EU

Yet, it’s now Starmer is now to be an embattled party leader. While Europe may not be the boiling pot in UK politics, a lid which was tightly sealed for five years is starting to loosen once more.

The Prime Minister and Chancellor have intensified their language about the devastation caused by Brexit has inflicted on the UK’s economy. This serves as an effective tool to criticize the Reform UK leader, who now rarely mentions his flagship policy was his primary goal and remains his sole political accomplishment.

And yet, the extent of the economic harm, reportedly has resulted in an economy that is significantly diminished compared to EU membership, dwarfs the micro-mitigation thus far implemented by the government. Starmer’s so-called re-set deal agreed with Brussels in 2024 offers economic benefits measured in fractions of a percent.

Cabinet Divergence & Bolder Ideas

Rachel Reeves is among those attempting to bypass entrenched interior ministry opposition to a broader scheme of a growth-enabling program for young people by which youths can move between Britain and Europe to study or work.

The deputy prime minister has pondered publicly about the “self-evident” benefits of joining an EU customs pact, as several Labour backbenchers, such as the head of the powerful finance committee, recently supported an opposition proposal on joining one.

Although Nick Thomas-Symonds, who oversees EU policy, who is now attending all cabinet sessions, insists the red lines are still in place, there are ways these could be bypassed. One idea would be to declaring the commencement of negotiations now on a much bolder deal, for inclusion in the next manifesto, to be enacted only after Labour won a fresh mandate.

The Prime Minister's Fundamental Scepticism

However, Starmer has most recently pouring cold water again cautioning that rejoining an EU customs arrangement would “unravel” the trade pacts with America, which he views as key accomplishments of his premiership.

It is understood that the PM’s scepticism go still deeper, and is rooted in several key concerns.

  1. First, he believes any customs union agreement is now much harder as ministers are busily de-aligning from EU regulations in numerous policy areas, including the environment.
  2. Second, the prohibitive cost demanded from Britain to join a European defense initiative and the ensuing failure in talks has led UK negotiators that European nations have little interest in cutting special deals to the UK and are more focused on demonstrating that leaving the EU was a mistake.
  3. Thirdly, the new US national security strategy, which has been welcomed by the Kremlin, is seen by key advisors in Number 10 as grounds for the UK to maintain distance from the EU.

A Bizarre Document and Geopolitical Considerations

This bizarre and terrifying document claims Europe faces “civilizational erasure” because of immigration. It contains a single mention of the UK, found on a proposal that Donald Trump’s administration will intervene in our politics to encourage the growth of nationalist movements.

However, instead of concluding that this renders the US an undependable ally, the government is worried that aligning closer with Europe would destabilise geopolitics further by risking fragile US military support for Ukraine, Nato and much more besides.

Leadership Speculation & The Ghost from the Past

All of which brings us back to the conference of 2018. The PM has consistently stated that address was not an attempt for the leadership but simply an effort to preserve the possibility of staying in the EU in a future vote. In fact, back then, Starmer still favoured a “bespoke customs union deal” of the kind he now appears to be opposing.

Observers within the Prime Minister's office note that Wes Streeting, widely considered would stand for the leadership, is part of a group of senior ministers letting it be known they desire greater ambition on Europe.

Staff for Angela Rayner, another likely contender in a future race for the top job, insist she refuses to comment on her stance regarding a customs pact as it would merely “fuel unnecessary gossip”.

The Obvious Risk and A Prudent Memory

The risk is clear. Should the PM reject more meaningful steps towards a close relationship, he cedes ground to claim the territory where most of Labour MPs, members and voters reside.

It would be wise for Starmer to remember the impact just a few words had for him seven years ago. Potential pathways for a big offer on Europe which the PM should not “rule out”; he should explore them himself, before someone else adopt them as their own.

KW
By

Kelly Walsh

Eleanor Whitfield is a financial analyst specializing in precious metals with over a decade of experience.

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