Eurogroup President Praises ‘New Footing’ in UK-EU Relations, According to Reuters

By Tommy Reggiori Wilkes

LONDON – The president of the Eurogroup of euro zone finance ministers emphasized the need for Britain and the European Union to transform their initial efforts to rebuild trust into a more consistent collaboration as they tackle shared challenges.

Speaking to representatives from Britain’s financial sector, Paschal Donohoe highlighted his recent discussions with UK finance minister Rachel Reeves, which included topics such as reforming the pension system and enhancing long-term savings to invigorate capital markets. He also addressed the ongoing drive for a capital markets union within the euro zone.

Donohoe remarked, "While both the UK and EU must make their own decisions for progress, it is encouraging that we’ve established a new basis for our relationship, allowing us to discuss these critical issues that affect our citizens and businesses."

Additionally, he expressed strong support for the UK Government’s efforts to deepen ties with the EU, addressing an audience at the historic Guildhall, the home of the City of London Corporation.

Since taking office this summer, UK Prime Minister Keir Starmer has pursued a reset of relations with the EU, aiming to strengthen connections as part of his broader economic growth strategy.

Donohoe also praised last year’s UK-EU Memorandum of Understanding on Financial Services, which facilitated the establishment of the Joint EU-UK Financial Regulatory Forum.

In his speech titled ‘Financing Our Future,’ the Eurogroup president underscored the importance of advancing the capital markets union in the euro zone. He stated, "In light of growing dissatisfaction with market-based solutions and widespread budgetary challenges, it is vital to make further strides in the capital markets union."

He noted that recent interactions among member states reflected a significant shift in both attitudes and political resolve.

"Playing the ‘devil’s advocate,’ I believe that without a true capital markets union in Europe, initiatives such as the green transition would be far less likely to succeed," he concluded, addressing those present in London.