Key insights
- The UK plans to introduce legislation to strengthen ties with the EU, focusing on aligning with EU regulations in some industries to support economic growth. While avoiding a return to the single market or customs union, this move aims to improve economic relations. The impact on US equities is slightly negative, as increased UK-EU cooperation could marginally reduce the UK's reliance on US trade and investment.

Investing.com -- Britain will introduce legislation to strengthen ties with the European Union, Prime Minister Keir Starmer announced Wednesday, as he seeks to repair economic relations with the bloc while facing pressure to resign.
King Charles outlined the government’s legislative program in a speech, stating a bill would be introduced to strengthen ties with the EU. The European Partnership Bill will implement agreements with the EU now and in the future, the government said.
Starmer has faced pressure from lawmakers to step down after his Labour Party suffered significant losses in Scottish, Welsh and local English elections last week. He has maintained his position and said rebuilding the relationship with Europe remains central to his plan for the country.
The prime minister has pursued closer ties with the EU while avoiding reopening Brexit debates ahead of Britain’s 2020 departure from the bloc.
The government said Britain needs to align with EU regulations by default in some industries to support economic growth. Starmer maintains Britain will not return to the EU’s single market or customs union and will not restore freedom of movement with the bloc.
Britain and the EU reached a framework a year ago to agree new deals on food and drink, emissions trading and electricity. Details are still being negotiated.
The proposed bill would ensure agreements with the EU can be implemented now and in the future, the government said.
Britain’s parliament will have a say before EU law is applied in the UK. Any new treaties that might be applied under the bill would be subject to parliamentary approval.
Starmer said in a written introduction to the King’s Speech that removing barriers to growth meant setting a new direction for Britain at the next EU summit, putting Britain at the heart of Europe.
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