Press

Britain should scrap visa costs for foreign workers and offer a stable regulatory climate for investment if it’s to stem a “flood” of services trade heading to the European Union after Brexit, according to a new report.  Fresh analysis by Sam Lowe, a senior research fellow at the Centre for European Reform, urges the UK government to shift its policy focus away from securing free trade agreements (FTAs) and instead take steps to encourage immigration.

"Politically, the government made a decision to prioritize regulatory autonomy over economic integration with the EU and the trade deal reflects that - it does little to facilitate trade," says Sam Lowe, a senior research fellow at the Centre for European Reform.

There is frustration in Brussels that the UK has so far been reluctant to engage more deeply on broader issues such as security and defence policy, but Charles Grant, director of the pro-EU think-tank Centre for European Reform, argues that mutual interests on issues such as the Middle East and climate change will ultimately bring the two sides together.

Is it really possible that Russian could impact the continent's energy security by simply turning off the gas tap? In theory, yes, says Ian Bond, director of foreign policy and a Russia expert at the Centre for European Reform. "But that goes in both directions. The question is whether the EU will freeze before the Russians run out of money," he adds. After all, the Russian economy – around the same size as Spain's – is highly dependent on selling gas and oil to Europe.

"Draghi's emphasis will be on firefighting," Dr Luigi Scazzieri, a research fellow at the Centre for European Reform (CER), told Euronews. "First is making sure that the vaccination campaign picks up speed. Second is ensuring that Italy's economy recovers quickly, by spending the money from the EU's recovery fund in ways that maximise potential growth."

But "it is difficult to overstate the scale of the challenges that Draghi and Italy face", said Luigi Scazzieri, of the Centre for European Reform.

“What was clear before the pandemic has become even more obvious now: the fiscal rules in Europe need a substantial overhaul,” said Christian Odendahl, chief economist of the Centre for European Reform.

“Draghi is like a deus ex machina figure,” said Charles Grant, the director of the Centre for European Reform. “But reforming the Italian [system] is very, very difficult.”