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A Caution to Keir Starmer drawn from His Personal History: If You're Not Bold on Britain's EU Exit and the EU, His Labour Rivals Will Be.

Seven years ago, a mere a short phrase to electrify a Labour conference demonstrating Labour was falling out of love with its then leader. Although not precisely soaring oratory, the phrase met with wild cheering as most of the hall stood for an impromptu ovation.

As the commotion died down, Keir Starmer, stood at the podium, visibly startled. He wasn't really accustomed to his addresses producing such a reaction. His statement was simply: "We are not excluding remain as an option". But context is everything.

During that deeply polarized period in 2018, departing from the prepared script like this was always going to be seen as laying down the gauntlet to Jeremy Corbyn, who sought to prioritize Brexit voters in working-class seats over the Europhile sentiments within Labour. With that single address, this seemingly cautious opposition Brexit spokesman was transformed – if only for a while – into a political gambler who championed the party's base against the leadership he later succeeded.

The Shift of Stance & Settled Debates

In the years since, much has happened, not least to Starmer himself. One of his first acts upon assuming leadership from Corbyn in 2020 was declaring the EU question was resolved by the previous year’s national vote. And, at the last one, he repeatedly emphasised manifesto “red line” commitments that ruled out re-entry into the EU, the single market or a customs union.

Like his predecessor, the PM's approach has been to pursue pro-Leave voters in target constituencies, even if survey data indicates many of them have passed away or shifted opinion.

Pressure Building on the EU

Yet, it’s now Starmer is now to be an embattled party leader. While EU relations may not be the central crisis of British politics, the cap which was tightly sealed for five years is starting to loosen again.

The Prime Minister and Chancellor have intensified the rhetoric regarding the damage caused by Brexit has caused to the UK’s economy. This serves as an effective tool with which to beat the Reform UK leader, who now rarely mentions how leaving the EU was his primary goal and is still his only real achievement.

And yet, the scale of the damage, which by some estimates has resulted in an economy that is significantly diminished than if it were still in the EU, dwarfs the minor adjustments so far offered by ministers. Starmer’s so-called re-set deal agreed with Brussels last summer provides gains quantified in low decimal points.

Internal Pressure and Ambitious Proposals

The chancellor is among those trying to overcome entrenched Home Office resistance to an expansive version of a growth-enabling program for young people allowing youths can move between the UK and the EU to study or work.

David Lammy muses openly regarding the “self-evident” benefits of joining a customs union with the EU, while a dozen Labour MPs, including the chair of the Treasury select committee, last week voted for an opposition proposal on joining one.

Although Nick Thomas-Symonds, the minister in charge of EU policy, who is now attending all cabinet sessions, maintains the firm boundaries are still in place, there exist avenues these could be bypassed. A proposal would be to announce the start of negotiations now for a more ambitious agreement, for inclusion in the following election platform, to be enacted only after Labour won a new electoral mandate.

Starmer's Fundamental Scepticism

However, Starmer has most recently pouring cold water on the idea by warning a return to an EU customs arrangement could undermine the trade pacts with the US, which he views as key accomplishments of his government.

Reportedly that Starmer's doubts run even deeper, and is rooted in several key concerns.

  1. Firstly, he believes a customs pact has been made significantly more difficult as ministers are actively diverging from EU regulations across a range of sectors, like environmental standards.
  2. Second, the exorbitant price demanded from Britain for entry into a European defense initiative and the subsequent collapse of negotiations has convinced British officials that former EU partners are less interested in cutting special deals with Britain than in demonstrating that Brexit does not work.
  3. Thirdly, the new US national security strategy, which has been welcomed by Moscow, is viewed by some influential figures in Number 10 as a reason for Britain to maintain distance from the EU.

A Bizarre Strategy & Geopolitical Calculations

This strange and concerning document asserts Europe is threatened by cultural extinction due to immigration. It contains a single mention to Britain, found on a proposal that Donald Trump’s administration may interfere in British politics to encourage the growth of “patriotic” parties.

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

Leadership Speculation and The Echo from the Past

This situation brings us back to 2018. The PM has consistently stated that address was not an attempt to become leader but simply an attempt to keep open the possibility of staying in the EU in a future vote. In fact, back then, he still supported a “bespoke customs union deal” similar to the one he currently seems to reject.

Observers within Downing Street have noticed that Wes Streeting, widely considered would be a candidate for the leadership, is part of a group of cabinet ministers letting it be known they want to go further on Europe.

Staff for Angela Rayner, another likely contender in a future race to replace Starmer, insist she won’t discuss her stance regarding a customs pact because it would only “fuel unnecessary gossip”.

The Clear Danger & A Wise Memory

The danger is obvious. If Starmer rules out significant moves towards EU alignment, he allows rivals to occupy the space where the overwhelming majority of Labour MPs, members and voters reside.

It would be wise for Starmer to remember the effect that a short phrase had for him seven years ago. There are options for a major proposal on EU relations which the PM ought to consider; he should prise them open himself, rather than letting rivals adopt them as their own.

AM
By

Ashley Martinez

Financial analyst specializing in forex markets and international currency trends, with over a decade of industry experience.

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