(Bloomberg) — Chancellor of the Exchequer Rachel Reeves will join a meeting of Eurozone finance ministers next month, as part of the new Labour government’s continued effort to deepen cooperation with the European Union.
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Reeves will become the first chancellor to join the Eurogroup meeting on Dec. 9 since Britain’s exit from the EU in 2020. Though the UK wasn’t previously a member of the group because it never adopted the euro, chancellors did used to attend wider EU meetings of economic and finance ministers when it was part of the bloc.
“From supporting Ukraine, to boosting growth and creating a more prosperous Europe, we need to work together with our European partners,” Reeves wrote in a post on X, announcing her acceptance of the invite from Eurogroup President Paschal Donohoe.
The meeting will focus on the global macro-economic outlook, economic support for Ukraine and the priorities of the Group of Seven nations. Her attendance comes after Prime Minister Keir Starmer held a bilateral meeting with European Commission President Ursula von der Leyen last month, marking the UK’s first substantive step in its reset of relations with the EU, with formal negotiations expected to begin in December or January. They also promised to host the first UK-EU summit next year.
The UK wants to forge a veternary agreement to end border checks on fresh food, a security pact focused on defence, as well as mutual recognition of professional qualifications and a special visa for touring artists. UK and EU diplomats believe that 2025 is the crucial window for thrashing out these pacts.
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Reeves is under pressure to boost economic growth in the UK, after a huge investment package in her budget last week was met by a disappointing growth projection. Despite Labour’s £100 billion ($130 billion) of capital spending, the fiscal watchdog said that investment would only boost GDP by 0.5% in 10 years’ time, rising to 1.4% by 2073-74. Still, the new Labour government continues to maintain its longstanding red lines on not rejoining the single market and customs union.
The EU occasionally invites external guests to join its strategic discussions — US Treasury Secretary Janet Yellen attended a Eurogroup meeting last year, while David Lammy became the UK’s first foreign secretary to join an EU meeting of foreign ministers since Brexit last month.
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