Andy Burnham Warns New EU Industrial Rules Could Damage UK Economy

New EU industrial proposals would harm UK economy, Andy Burnham warns

Andy Burnham has expressed concern that proposed EU regulations designed to support continental manufacturers could harm British industry, raising the issue directly with European Commission President Ursula von der Leyen.

The planned EU legislation aims to protect domestic manufacturers against competition from China by prioritizing businesses inside the trading bloc for subsidies and public procurement contracts.

Speaking during a flight to a United Nations summit in New York where he met von der Leyen, the prime minister highlighted potential risks to British supply chains and industrial sectors.

Burnham also declined to rule out a future commitment to rejoin the EU in Labour's next election manifesto, describing the question as an issue "for another day". His immediate focus, he said, remains on repairing relations with Brussels and securing economic agreements beneficial to Britain.

The proposed initiative, titled the Made In Europe scheme and formally named the Industrial Accelerator Act, remains in draft form. European automotive leaders have already asked EU negotiators to include the UK to avoid disrupting cross border automotive manufacturing.

Disagreements over the initiative have contributed to further delays for this year's bilateral EU UK summit, which was previously postponed following Sir Keir Starmer's resignation as prime minister in July.

"We have considerable support among the member states for the position we are taking, because Europe's argument is not with us," Burnham told reporters.

"We both suffer the same effects as other countries, particularly steel and the issue it raises for the steel industry in Europe and in Britain. We are making the argument 'we are not your enemies here… we are not the problem'. Made in Europe is dealing with a different problem. We are making the argument that 'let's avoid collateral damage'."

Rebuilding diplomatic and trade relationships

Burnham indicated his upcoming speech to the UN General Assembly would reflect on the decade since the 2016 Brexit referendum. He noted that instability occurs when external actors try to distort facts and manipulate British democratic processes, adding that the UK must actively challenge such interference over the coming decade.

Addressing questions regarding potential long term EU membership, Burnham emphasized the immediate diplomatic agenda.

"Our focus at the moment is on a UK-EU summit which we hope will take place later this year," Burnham said. "My immediate priority is to build on the good work that Keir [Starmer] did in rebuilding bridges, because those bridges were broken in the early part of this decade."

"What we have got to do is now go to the next level in terms of reaching practical agreement that will further boost the British economy, and those issues are the substance of the summit alongside EU requests around youth mobility," he added.

When asked whether the UK might consider associate membership or full re-entry in the future, Burnham maintained that broader questions were for another time.

The comments follow statements from Jukka Salovaara, the EU's ambassador to the UK, who addressed delegates at the Liberal Democrat conference in Brighton. Asked whether the UK could rejoin or secure associate status, Salovaara noted that doors remain open, though decisions on cooperation levels rest entirely with the British public.

Burnham previously stated last September that he hoped to see Britain rejoin the EU during his lifetime. Earlier this year, while acknowledging Brexit had proved damaging, he argued against re-opening past debates.

Regarding recent EU suggestions that Canada could potentially become the bloc's first associate member, Burnham confirmed that option was not offered to Britain, stating: "The European Union made it clear that that wasn't open to us."

Source: BBC News