The Governor of the Bank of England Andrew Bailey has expressed support for "rebuilding relations" with the European Union (EU), highlighting the "consequences" of Brexit on the British economy.
"As a public official, I do not take a stance on Brexit itself. But I must highlight its consequences," he admitted on Thursday evening, acknowledging that leaving the EU has impacted the UK’s foreign trade, during a speech to British financial sector representatives.
"We must welcome opportunities to rebuild relations while respecting the British people’s decision to leave the EU," he added. His remarks were widely reported in the British press on Friday, which described them as some of his strongest comments on Brexit to date.
Since taking office in July, Labour Prime Minister Keir Starmer’s government has repeatedly signalled its intention to establish a "more constructive" relationship with the EU, while ruling out rejoining the single market, the customs union, or restoring freedom of movement.
However, London also seeks to maintain its "special relationship" with the United States, concerned about the protectionist tendencies of Donald Trump following his victory in the American presidential election.
Bank of England Governor Andrew Bailey attends the Financial and Professional Services Dinner, previously known as the Bankers dinner, at Mansion House, in the City of London, on November 14, 2024. Isabel Infantes / POOL / AFP
Rachel Reeves, the British Chancellor of the Exchequer, also called on Thursday evening at the same event at Mansion House, the official residence of the Lord Mayor of the City of London, to “reset” the relationship with the EU, the UK’s largest trading partner.
"We will not reverse Brexit or rejoin the single market or the customs union," she said, "but we must recognise that our markets are highly interconnected."
