London Daily

Focus on the big picture.
Tuesday, Jun 23, 2026

Brexual healing? EU and Britain dream of a fresh start in 2023

Brexual healing? EU and Britain dream of a fresh start in 2023

Officials on all sides optimistic of a new year breakthrough.

Three tortuous years after Britain left the EU, hopes are rising on both sides of the English Channel that 2023 will prove a transformative year for the U.K.-EU relationship.

Officials in London and in Brussels acknowledge an urgent need to heal the wounds of Brexit and start to smooth over cracks in the relationship that could be exploited by hostile states.

Relations between the two sides have been under a perennial cloud following Britain’s vote to leave the EU in June 2016 and the subsequent political turbulence in London. But Russia’s invasion of Ukraine in February 2022, and the departure of Boris Johnson as U.K. prime minister six months later, have shifted the dynamic, creating both an imperative for closer working — on issues such as energy, defense and security — and the political headroom for a fresh start.

Downing Street is now showing a willingness to conclude thorny negotiations over how Gibraltar and Northern Ireland — both British territories with EU land borders — will conduct business with the 27-country bloc. Deals on both issues could be signed off in the early part of 2023.

“There will be a concerted effort to try to get a positive outcome on the Northern Ireland protocol,” said Raoul Ruparel, a former special adviser on Brexit to ex-British Prime Minister Theresa May, in reference to the Brexit deal's controversial protocol for trade between Northern Ireland the rest of the U.K. “I do think the government in the U.K. is now working honestly towards that, and obviously the EU says it’s open to it.”


A tale of two negotiations


Efforts to thrash out an international treaty on Gibraltar’s future relationship with the EU could yield a resolution within the first few weeks of 2023, according to officials on all sides of the negotiation.

A Gibraltar settlement could in turn yield a positive spillover effect into the entrenched Northern Ireland protocol talks, those involved believe, while also removing the risk of Spain withholding a resolution on the latter until the former is resolved.

Successfully landing a Gibraltar deal in 2023 will require smart messaging from both London and Madrid


Successfully landing a Gibraltar deal in 2023 will require smart messaging from both London and Madrid, however, given domestic sensitivities. In the U.K., the European Research Group (ERG) of Euroskeptic Tory MPs fear the agreement may undermine Gibraltar’s historic links to Britain. In Spain, right-wing opposition parties — expected to campaign on a Spanish nationalist ticket in the 2023 general election — are likely to portray any deal struck by the left-wing coalition government in Madrid as a missed opportunity to bring the Rock back under Spanish control.

In Northern Ireland, officials are aiming to deliver some sort of consensus on the main issues by April 10 — the 25th anniversary of the 1998 Good Friday/Belfast Agreement that helped bring peace to the region, and which might be marked by a visit to Europe of U.S. President Joe Biden.

The European Commission this month pushed back for three years the enforcement of new regulatory rules on veterinary medicines in Northern Ireland, creating more space for a deal. And former Irish Prime Minister Bertie Ahern, who’s been helping negotiations behind the scenes, told the BBC he believes the protocol row “can be sorted out” over the “early weeks of next year.”

Some fear that any swift deal will be just another sticking plaster, however, given British Prime Minister Rishi Sunak’s limited headroom when managing his Conservative backbenchers, and the considerable gap between London and Brussels in key areas such as food safety checks on goods coming in and out of Northern Ireland.

Ruparel suggested the EU and the U.K. might instead agree an interim agreement in 2023 to help both sides move away from the current deadlock, with Britain’s controversial Northern Ireland Protocol Bill still making its way through the U.K. parliament and with London continuing to unilaterally extend “grace periods” on rules regulating the trading of goods across the Irish Sea.

Such a deal could in turn give the Commission grounds to pause its multiple legal proceedings against the U.K. over alleged breaches of the protocol — which otherwise would go ahead in the new year.


Cooperation vs. competition


Any deal on the protocol would instantly eliminate by far the biggest source of tension between Brussels and London, potentially unlocking cooperation on other policy areas that have been put on ice, such as joint science programs.

British-based researchers and companies are currently blocked from taking part in EU programs such as the massive Horizon Europe science and research scheme, with the Commission refusing to sign off on Britain’s association until the Northern Ireland dispute is resolved.

Tellingly, the U.K. has decided to continue funding successful British applicants to Horizon Europe with its own money for a further three months while talks on the protocol continue, rather than simply ditching association for good and pursuing home-grown alternatives.

More broadly, resolution on the protocol issue would allow a more fluid dialogue between London and Brussels on other global challenges from migration to Russia and China, diplomats believe, while creating space for discussions on further improvements to the Brexit Trade and Cooperation Agreement at its first scheduled review point in 2026.

Ahead of that date, the U.K. will look to enhance trade ties with the EU over the coming year, but through “marginal” improvements rather than a wholesale shift in relations, said Sam Lowe, a trade expert and partner at Flint Global consultancy.

“The politics in the U.K. are not still conducive to stepping away from a hardline approach that views any sort of integration with Europe as betrayal,” he said.

In Northern Ireland, officials are aiming to deliver some sort of consensus on the main issues by April 10


Key areas for trade discussions in 2023 will include the rules of origin for electric vehicles, with EU regulations set to become more restrictive at the beginning of 2024. Lowe predicted the deadline is likely to be extended at the last minute.

The EU and the U.K. could also open discussions to link up their respective emissions trading systems to ensure Britain does not get caught by the new EU carbon border adjustment mechanism (aka CBAM), due to enter into force from 2026. Britain will also want to keep a close eye on any EU response to the U.S. Inflation Reduction Act, Ruparel warned.


Clogged parliament


In the meantime, several pieces of planned U.K. legislation could become flashpoints in the new year.

Two proposed laws with the potential to antagonize EU partners are awaiting progress in the House of Commons: the Retained EU Law, aimed at allowing ministers to scrub EU rules from the U.K. statute; and the Bill of Rights, which could include provisions taking Britain out of the European Court of Human Rights, freeing ministers to pursue their policy to offshore asylum seekers to faraway places overseas.

Both pieces of legislation could yet be delayed, however.

“The first few months of next year might be a bit like 'Waiting for Godot,'” chuckled a British opposition Labour party official.

For Labour’s part, 2023 will be about putting more flesh on the bones of its policy of improving relations with the EU, while trying to avoid any accusation of betrayal from those who voted for Brexit. 

Following Labour leader Keir Starmer’s most recent Brexit pitch, Labour officials are now discussing the exact level of alignment they would be ready to accept in order to reduce trade frictions.

The party also wants to improve cross-border mobility for people in the creative industries, as well as a closer security and defense cooperation with the EU, Shadow Cabinet Office Minister Jenny Chapman said.

She stressed that in government, the party would seek swift resolution on any outstanding issues that have not already been resolved by the time of the next election.

“Keir is very clear that if we were to win an election, he doesn’t want us to spend the first three years faffing around with Brussels,” she said, adding: "He wants to get things resolved fairly quickly."

Newsletter

Related Articles

0:00
0:00
Close
UK Heatwave Disrupts Transport, Healthcare and Public Services as Red Weather Alerts Expand Nationwide
Barclays Warns of Growing Cyber Risk Divide Between Large UK Firms and Micro Businesses
European Defence Plans Including Ukraine Integration Prompt UK Strategic Reassessment
UK Equity Markets React as US–Iran Peace Roadmap Eases Oil Price Pressures
United Kingdom Expands Global Clean Energy Partnerships With Brazil, Morocco and Tanzania
Lord David Frost Urges Incoming UK Leadership to Abandon EU Regulatory Reset Strategy
Housing Groups Support Amendment to Strengthen Fire and Gas Safety Access Powers in Social Housing
South London NHS Estates Staff Ballot on Industrial Action Over Pay Structures in Hospital Maintenance Services
United Kingdom Government Invests £60 Million in AI Research Labs at Oxford and University College London
Barclays Cyber Security Report Highlights Rising Threat Exposure Among UK Small Businesses in AI-Driven Attacks
UK Met Office Heatwave Triggers Transport Warnings as Rail Operators Urge Cancellations Amid Infrastructure Strain
South London NHS Estates Workers Ballot for Strike Action Over Pay Disputes Across Major London Hospitals
Barclays Warns of Severe Cyber Security Gap Between Large Corporations and Small Businesses in the United Kingdom
United Kingdom Government Allocates £60 Million for Artificial Intelligence Research Laboratories at Oxford and UCL
National Health Service Approves Teplizumab Treatment to Delay Onset of Type One Diabetes in First European Rollout
Met Office Issues Rare Red Extreme Heat Warning Across London, South East and West Midlands as Transport and Health Systems Face Disruption
Prime Minister Keir Starmer Resigns After Labour Party Revolt Following Economic Stagnation and Local Election Losses
United Kingdom Economy Contracts for Second Consecutive Month as Private Sector Weakens and Job Loss Fears Rise
Taxpayer Support Grows for Higher Digital Levies on Multinational Tech Companies
Bank of England Signals Caution Over Inflation Despite Easing Energy Prices
Lloyds Banking Group Expands Artificial Intelligence Hiring Amid Sector-Wide Automation Shift
Film Producer Corporate Collapse Leaves Creditors Facing Unrecoverable Losses
UK Ten-Year Brexit Anniversary Highlights Ongoing Political and Economic Uncertainty
Nottingham Maternity Scandal Inquiry Reveals Systemic Failings in NHS Care
Met Office Heatwave Prompts Public Health Warnings Across United Kingdom
Concerns Rise Over Fiscal Stability as Political Uncertainty Weighs on UK Borrowing Costs
UK Taxpayers Back Higher Digital Taxes on Global Technology Firms, Survey Shows
Bank of England Holds Interest Rates Steady Amid Persistent Services Inflation
Reform UK and Opposition Leaders Call for General Election Following Starmer’s Departure
Ten Years After Brexit Referendum, UK Faces Ongoing Political Fragmentation and Economic Debate
Nottingham University Hospitals Maternity Inquiry Exposes Severe NHS Failures
Met Office Issues Heat Health Alerts as United Kingdom Faces Record-Breaking Temperatures
Andy Burnham Emerges as Front-Runner for Labour Leadership After Starmer’s Resignation
Keir Starmer Resigns as UK Enters New Phase of Political Leadership Transition
UK Expands Alcohol Ban Enforcement Using Tagging Technology Ahead of World Cup
UK Invests £50 Million in Critical Minerals Supply Chain Security
UK Appoints Special Envoy on Preventing Sexual Violence in Conflict
UK Introduces Fines for Landlords of Unsafe Rental Properties
Reform UK Leads Opinion Polls as Immigration Debate Reshapes UK Politics
Police Investigate Edinburgh Attacks as Potential Hate Crimes
King Charles to Publish Personal Tax and Royal Household Financial Records
Nottingham University Hospitals Maternity Inquiry Report Set for Publication
Heat-Health Alerts Issued Across London and Southern England Amid Rising Temperatures
UK Economy Shows Pressure From Middle East Conflict Despite Modest Growth
Brexit Anniversary Reignites Debate Over UK Economic and Political Direction
UK Parliament Continues Legislative Work Amid Leadership Transition
Financial Markets Hold Steady After UK Leadership Shake-Up
Andy Burnham Enters Labour Leadership Race With Strong Parliamentary Backing
Keir Starmer Resigns as UK Prime Minister After Two Years in Office
Reform UK MP Lee Anderson to Raise Pension Concerns Over British Coal Staff Superannuation Scheme
×