Bank of England Governor Andrew Bailey has called on UK ministers to improve relations with the EU, acknowledging that Brexit has harmed the country’s economy, particularly in goods trade. Speaking at the Mansion House dinner in London, Bailey highlighted the challenges faced by exporters, especially small businesses, due to non-tariff barriers like customs checks. While services exports have remained strong, goods trade continues to struggle post-Brexit. Bailey emphasized the need to explore ways to rebuild ties with the EU, in line with the 2016 referendum’s outcome.
His comments align with a shift in political tone, with Labour leader Keir Starmer’s government seeking deeper EU cooperation but ruling out rejoining the EU’s single market or customs union. Bailey also addressed global trade tensions, advocating for free trade and opposing protectionist measures like tariffs. His remarks echo previous warnings from former Bank of England Governor Mark Carney about the economic risks of Brexit.
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