The Governor of the Bank of England urges the UK government to search for closer trade relations with the European Union

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

Bank of England’s governor Andrew Billy called on the government to “reduce the negative effects” of Brexit by searching for a closer consensus with the European Union.

Billy presented the case on Thursday to reduce non -carrier barriers, especially in the financial services industry, saying that Lome Red Lope will enhance trade and economic growth.

His comments come after Prime Minister Sir Kerr Starmer revealed the United Kingdom’s “reset” deal with the European Union this month. It includes plans to reduce barriers that prevent trade in regions, including food and electricity.

In a speech, Billy welcomed the government’s efforts to increase trade with Europe, but warned that Britain’s exit from the European Union may “weigh” productivity and growth and suggested that the United Kingdom and the European Union seek to increase the deepening of its relations.

Billy joined the forces in November with Chancellor Rachel Reeves in UK’s call for rebuilding Relations with the European Union, at a time when concerns were growing about a commercial war by Atlantic after Donald Trump’s victory in the US presidential elections.

The Governor of the Bank of England, speaking in Ireland, suggested that more effort can be made to increase the UK and the European Union in financial services, saying that “a two -way street” would deepen the markets and benefit from both sides.

“There is an advantage in seeking to increase the openness of our financial markets by reducing non -fire barriers,” he said to Dublin’s financial services dinner.

Reeves argued that Britain should seek a partly closer commercial relationship with the European Union by approving the alignment of the bases between the two sides in the “mature industries” such as the chemical sector.

Starmer’s allies said that the UK-UK Appointment deal was a starting point for negotiations on close relations and that the confidence in which new arrangements were built can lead to more ambitious moves to enhance future trade.

Billy said that although he did not say that Britain’s exit from the European Union was “a mistake”, he created other barriers. “We must do everything we can to reduce the negative effects of trade,” he said.

It was clear about the benefits of both the UK and the European Union to increase the openness of financial markets by reducing non -fire barriers, as he opposed the idea that trade was a “one street” from Britain to the bloc.

“As with the merchandise trade, open financial markets support economic growth in addition to increasing investment and reducing the cost of capital,” said Billy.

He added that the close cooperation between the United Kingdom and the European Union was increasingly relevant in the context of “increasing the volatility of the market”, which was observed after Trump’s tariff ads.