đź”— Share this article Rachel Reeves Confronts A Most Significant Problem: The EU Exit Conundrum The chancellor has approached this week's financial plan similar to a unwilling swimmer inching into freezing water, attempting to ease the unpleasantness through gradual entry. First Steps and Revenue Promises Reeves began addressing the problem of insufficient revenue at the close of the summer months. Initially, she declined to uphold earlier insistence that tax rises in the previous year's budget would be the ultimate ones. Then, in early November, she took a bolder step into the icy sea. Her address promised to "implement needed measures" to fund state services and keep loan interest under control. Election Promise and Government Withdrawal Within 10 days, the exchequer had withdrawn the hint. The manifesto commitment remained intact after all. Like every icy-water dipper realizes, this aborted plunge and quivering retreat is the least effective of all techniques. No strategy extends the suffering like uncertainty. It can be hard to be decisive when choosing between levels of personally caused damage. Optimism as Approach Optimism has not been a successful strategy for the ruling party. Fundamental of Keir Starmer's election bid was the vain hope of in some way fulfilling the public's demand for enhanced state services without overturning billions of pounds of Tory tax cuts. Messaging Deficiency Not once has both Starmer or Reeves adequately expressed a sense of shared mission to justify all this difficulty. To some extent that is a problem of personality appeal. The prime minister and the chancellor are strikingly similar in their communicative deficiency, wooden and reticent in a way that pushes listeners off instead of drawing them in. EU Exit Deal and Financial Situation Just as political pressure to invest in state services has pushed the Treasury to acknowledge that levies must increase, the financial necessity of boosting economic expansion makes it ever harder to ignore the expense of separation from the EU market. European Partnership and Negotiations The government used a year experimenting in the initial phase of improved relations with the EU: plans to end customs checks on agricultural goods; a youth mobility scheme. Ambition went a bit deeper on power generation, armed forces partnership, but nothing of substance has to date been agreed. Diplomatic Reality and International Status In the absence specific instruction and impetus from No 10, discussions are bogged down. Brussels authorities says trading benefits are unlocked with contributions to the European funds. British officials know that's the arrangement. That doesn't lead them eager for a open dispute and Nigel Farage screaming treason over whatever price ends up being settled. Economic Damage and Political Terminology Commercial conditions has triggered some shift in the administration's language on the EU relationship. The chancellor has started naming leaving Europe alongside the Covid pandemic as a reason of economic damage that the exchequer is working hard to repair. Other ministers have followed suit, although they carefully attribute the fault to "unfavorable agreement" or "the way we left", never just "Brexit". Geopolitical Context and Future Outlook The issue of the UK's long-term partnership with the EU can't be simplified to procedural changes and import controls when the whole geopolitical order is in tumultuous flux. Considering everything that has transpired since 2016, it feels legitimate still to be posing the big question: were Britain's interests advanced by leaving the EU? Conclusion These are harsh, difficult truths about the nation's position in choppy world affairs. It is understandable that Starmer and Reeves recoil from the task. It would take them beyond their capabilities, into forces that they cannot swim against. So rather they carry on anxiously pacing the coastline, hoping that perhaps shortly the tide will turn.