John Healey, the UK Chancellor, is scheduled to meet with EU finance ministers in Dublin on Friday. He plans to address concerns regarding the European Union's 'Made in Europe' scheme, which aims to protect EU industries from unfair competition, particularly from China. Healey will advocate for closer partnerships between the UK and the EU in technology, defense, and manufacturing, urging the EU to design the program in a way that fosters collaboration rather than creating barriers.
Treasury sources indicated that Healey will emphasize the importance of learning from previous negotiations, particularly after talks to include the UK in an EU defense loans scheme collapsed last year over financial contributions. The 'Made in Europe' initiative, formally known as the Industrial Accelerator Act (IAA), is currently under consideration by the EU and seeks to impose restrictions on goods from non-EU countries to protect local manufacturing.
There are concerns within the UK government that this scheme could exclude British firms from European supply chains. Healey aims to mitigate the economic impact of Brexit and strengthen ties with the EU, but insists this should not come at the expense of the UK’s interests.
Former UK trade negotiator Sir Crawford Falconer noted that the EU's initial proposal would have allowed free trade partners like the UK to participate, but later suggestions limited membership to EU nations, raising alarms about the potential risks to UK production facilities.
Earlier this year, Nissan highlighted the interconnectedness of EU and UK manufacturing, warning that restricting public support to EU-only assembly could harm competitiveness and disrupt supply chains, particularly in the electric vehicle sector.
Healey stated, 'The next chapter of Britain's growth story will be written in more places,' emphasizing that closer ties with the EU should enhance access for British businesses to necessary supply chains and customers.
The meeting will also focus on tech firms, defense companies, and manufacturing, with Treasury sources indicating that the Chancellor aims to ensure these sectors are not hindered.
This meeting follows a reset summit with the EU that was postponed after Sir Keir Starmer's resignation as prime minister, with expectations for it to occur in November. Additionally, Healey is in discussions about the UK's potential membership in the Defence, Security and Resilience Bank (DSRB), a global investment bank aimed at increasing funding for defense spending, led by Canada. This comes as Healey prepares for the upcoming Budget in October and next year's spending review, amidst challenges in funding the UK's defense commitments.