The prime minister's Brexit 'reset' is not what it seems

Keir Starmer’s mission to Germany ought to be something that arouses hope and optimism about Britain’s fractured relationships with its nearest neighbours – and still by far its largest economic partner – the European Union.

- SEAN O'GRADY

No one in their right mind, let alone with any sense of history, can dispute that a treaty between the two countries, as proposed by Starmer and seemingly welcomed by his counterpart, Olaf Scholz, is “a good thing”. Great things seem to be expected of it by Starmer.

It’s part of his “reset” of European relations and, also in his words, nothing less than “a once-in-a-generation chance to deliver for working people in Britain and in Germany”. Starmer claims that the UK is about to “turn the corner” on Brexit.

But erm... what exactly does that mean?

It is frustratingly vague, at least so far as the economic agenda goes. The prime minister, with little apparent concrete justification, says: “Growth is the number one priority for my government ... and building relations with our partners here in Germany and across Europe is vital to achieving it."

True enough, but there’s not much in what’s been made public so far that suggests a step change in UK GDP growth is at hand, let alone anything that will fulfil the rather rash Labour manifesto pledge to “secure the highest sustained growth in the G7”.

A vague commitment to improved cooperation across science, technology, development, trade and business will no doubt assist trade and boost research, development and innovation, but it will not transform the UK’s subdued long-term economic outlook. Only a massive increase in investment can do that, and, whatever else, the new Anglo-German friendship treaty is not going to deliver anything like that.