PM: UK-EU rapprochement faces hurdles over "Made in Europe" policy

UK Prime Minister Andy Burnham has warned that the European Union’s proposed “Made in Europe” programme could create obstacles to closer economic ties between Britain and the bloc, particularly for British steelmakers.

The initiative would give preference to products manufactured in EU member states when governments award contracts in areas including defence, digital technology and industry, foreign media reports.

Speaking during a political exchange with Liberal Democrat leader Ed Davey, Burnham said he wanted to strengthen relations between London and Brussels while highlighting concerns about the potential impact of the EU policy on British businesses.

"I do want a closer relationship, I will build on the work of my predecessor. There are issues facing British farming right now and there are issues facing British steel right now, and the 'Made in Europe' agenda could pose significant problems for British steel.

"So as he will know, we are approaching a UK-EU summit in the next couple of months. It is imperative I believe that we work hard to get a good deal for British steel, for British farming as part of that new deal that he talks about."

Burnham’s comments came as Davey called for Britain to go further in rebuilding economic ties with the EU, including potentially rejoining the bloc’s single market. Davey argued that Brexit had contributed to the UK’s weak economic growth and urged the prime minister to reconsider the country’s relationship with the EU.

Burnham stopped short of endorsing a return to the single market but reiterated his commitment to closer cooperation with Brussels.

The prime minister also said the upcoming UK-EU summit, expected in the autumn, would provide an opportunity to address economic and trade issues, including the concerns of British agriculture and the steel industry.

Burnham, who became prime minister on July 20, has made closer relations with the EU a priority while seeking to protect British industries from potential disadvantages arising from the bloc’s new economic policies.

By Sabina Mammadli