Ditch the Talk of Brexit ‘Resets.’ Britain Needs Results.

(Bloomberg Opinion) -- Nearly a decade after the Brexit vote, Britain faces escalating challenges on several fronts, not least a sluggish economy and surging public debt. New tariffs threatened by Washington could make these problems much worse. It’s a good time to focus on a long-elusive goal: repairing its fractured relationship with the European Union.

The EU remains Britain’s largest trading partner, accounting for 42% of UK goods exports — twice the share going to the US. If American tariffs slow European growth and investment, British firms will feel the aftershocks. Worse, having left the EU customs union, Britain is uniquely exposed to trade diversion. Cheap Chinese exports displaced from the US market are likely to land in the UK instead, potentially hammering domestic producers already weakened by Brexit.

UK Prime Minister Keir Starmer has favored a gradual approach to rebuilding UK-EU relations, while the EU remains focused on its own goal of “strategic autonomy.” Both sides should ditch the incrementalism and embrace a more ambitious agenda. A UK-EU summit on May 19 is an opportunity to turn vague talk of a “reset” into tangible cooperation across a range of areas.

Defense is an obvious starting point in the current climate. The two sides are reportedly close to a pact that would allow the UK to join the EU’s proposed €150 billion loan program for weapons procurement. This would be welcome, but the danger is that the agreement will be too narrow. Bolder effort to strengthen deterrence, reduce costs and support a more efficient defense-industrial base should be on the agenda. Neither side should let a deal be held up by disputes over fishing quotas.

The scope for further progress is broad. Although a formal review of the post-Brexit trade agreement isn’t due until 2026, meaningful changes can happen in the meantime if both sides show political will. Mutual recognition of qualifications for architects, lawyers, engineers and other professionals would remove artificial trade barriers and build people-to-people links. The existing trade agreement requiring sector-by-sector regulatory alignment is bureaucratic by design and deters progress.

Climate cooperation should be another obvious step. Linking the UK’s Emissions Trading Scheme with the EU’s Carbon Border Adjustment Mechanism would help stabilize prices, prevent arbitrage and advance climate goals. The EU already has a such an agreement with Switzerland; there’s no reason it can’t conclude one with the UK.

Many other areas — from expanding research links to tackling cross-border crime, terrorism and human trafficking — would benefit from deeper coordination. These don’t require reopening the entire trade deal. But they do require the UK to show some flexibility. That includes accepting EU demands for a youth-mobility program, something Britain has with Canada and other countries.

Other trade barriers should be addressed in time, but doing so will require overcoming both the EU’s bureaucracy and the UK’s hesitancy. The original UK-EU trade deal was negotiated when Britain’s main concern was maximum autonomy and Europe’s was to protect its overly cosseted single market while underscoring the cost of exit. One hopes priorities have evolved on both sides.

There are encouraging signs that Brussels is shifting. Its new competitiveness agenda — including reviews of burdensome technology laws and internal trade barriers — echoes many of the frustrations Britain had expressed as a member state. Europe, long a bastion of red tape, now needs openness and agility to remain globally relevant.  

To say the world has changed since Brexit was first envisioned would be an understatement. Britain and Europe now find themselves sharing common challenges and opportunities, but with an outdated way of working together. Their best response to the tariff roller coaster — as to so many other issues — is to buckle in together.

More From Bloomberg Opinion:

The Editorial Board publishes the views of the editors across a range of national and global affairs.

More stories like this are available on bloomberg.com/opinion

©2025 Bloomberg L.P.