EU-UK must leave last decade behind and build new strategic relationship – CBI report

Ahead of the EU-UK Summit, the CBI is today setting out how both sides can underpin a 'new strategic partnership' built on defence, energy security and economic growth that drives prosperity for current and future generations.

With geopolitical headwinds threatening EU-UK growth ambitions, the summit in London on Monday represents a turning point in the relationship where both sides can collaborate to drive forward sustainable growth and a prosperous future.

The CBI is publishing a report, Building Bridges: Enhancing the EU-UK Strategic Partnership, which sets out 12 strategic recommendations for how the EU and the UK can strengthen their partnership to successfully navigate the new geopolitical and economic context. These include enhancing mobility, streamlining regulations, advancing energy and climate goals, and bolstering economic security.

Produced in consultation with over 400 CBI members across the UK, the recommendations align with the government's growth mission and manifesto 'red lines', whilst also closely corresponding to the recommendations published in BusinessEurope's 'EU-UK Relations Outlook' paper in October 2024, to which the CBI contributed.

Mobility

• Better enable short-term business travel and Intra-Company Transfers through amends to the TCA and increased Home Office resources.
• Negotiate a Mutual Recognition of Professional Qualifications agreement.
• Agree reciprocal youth participation schemes.

Regulation

• Secure a bespoke Sanitary and Phytosanitary/Veterinary Agreement.
• Pursue a strategic approach to regulation of emerging technologies including developing joint roadmaps with relevant EU counterparts.
• Cooperate further on maintaining cross-border data flows, including preserving the UK's EU data adequacy status.

Energy and climate

• Strengthen cooperation on energy security, including through the North Sea.
• Link the UK and EU's Emissions Trading Systems.
• Agree mutual exemptions for the UK and EU's Carbon Border Adjustment Mechanisms.

Defence and economic security

• Undertake joint defence initiatives, including R&D collaboration, on issues like cyber security and space.
• Establish a Joint Supply Chain Taskforce to secure regional supply of materials, including Critical Minerals.
• Hold regular strategic dialogues to coordinate responses to defence and economic security issues.

Rain Newton-Smith, Chief Executive, CBI, said:

"The geopolitical challenges we must navigate require a bold and collaborative approach for the safety, security and prosperity of our region. With the disruptive headwinds of US tariffs bringing even more uncertainty to firms, the economic relationship between the EU and the UK is now more important than ever.

"Businesses on either side of the Channel urge both parties to use the inaugural EU-UK Summit to fire the starting pistol on an ambitious and bold drive towards an enhanced strategic partnership.

"Firms are clear that this isn't about re-running the arguments from the referendum, with both sides having set out their respective red lines. But to make progress we need to leave the last decade behind to work together on a programme of shared prosperity and economic security.

"The CBI's Building Bridges report sets out how a pragmatic approach to enhancing mobility, streamlining regulations, advancing energy and climate goals, and bolstering our mutual economic security, can unlock the progress necessary to give business confidence a vital shot in the arm."

John Harrison, Chairman, Airbus UK, said:

"In a more uncertain world, European and UK cooperation is not a choice, but a necessity for shared security and prosperity. As a company with deep roots in both Europe and the UK, Airbus welcomes CBI's push for closer ties.

"Specifically for aerospace, we welcome defence initiatives which bolster collective global influence and capability. In space, collaboration will accelerate innovation and safeguard European security and connectivity. And given the fragility of global supply chains, joint action is essential to secure reliable access to the materials we all benefit from."

Adam Berman, Director of Policy and Advocacy, Energy UK, said:

"The CBI's report sets out a clear vision of the future for UK-EU relations in a way that will deliver for both customers and the broader economy. It rightly acknowledges that more cooperation on climate and energy is the low-hanging fruit of our relationship with the EU. As the CBI highlights, proposals such as linking emissions trading systems will ensure the UK can achieve Net Zero faster - and at lower cost -while increasing the competitiveness of British industry. Common sense policies like these will remove barriers to growth and lead to lower costs for both industry and customers."

Download and read 'Building Bridges: Enhancing the EU-UK Strategic Partnership'