Healey urges EU not to exclude Britain from Made in Europe policy

Dublin, Ireland. Finance Minister John Healey will urge European Union counterparts not to exclude Britain from the bloc’s “Made in Europe” industrial policy, as he seeks deeper economic and security ties with the EU.

Push for closer ties

Healey wants closer partnerships with the EU in the technology, defence and manufacturing sectors, the Treasury said. He is also seeking improved access to European markets, 10 years after Britain voted to leave the bloc.

Britain’s Labour government has sought to improve trading ties with the EU since taking office in 2024, but has so far faced difficulties. It was unable to find a way to join the EU’s SAFE defence fund last year.

Concerns over industrial policy

The EU’s Made in Europe policy could become another obstacle, with Healey seeking carve-outs for Britain.

He will tell EU partners to “learn the lessons” from SAFE, after negotiations collapsed when London declined to pay the financial contribution required to participate.

The policy aims to reduce reliance on Chinese components by prioritising goods made in Europe over products from outside the bloc. The proposal has raised concerns among British automotive suppliers that form part of EU supply chains.

About £15 billion of British automotive exports are sold in European markets annually. Healey, attending his first EU finance ministers’ meeting since becoming chancellor in July, will tell the bloc not to create new barriers.

Potential reset agreement

According to the Financial Times, Healey will also indicate that Britain could agree a “reset” deal with the EU, provided Prime Minister Andy Burnham’s government could demonstrate that it “benefits people back home”.

A formal Britain-EU summit planned for July was postponed after former Prime Minister Keir Starmer resigned in June.