Starmer resignation stalls EU-UK summit on trade and energy

Keir Starmer’s resignation on June 22nd has derailed a scheduled July 22nd summit with the European Union, throwing the Labour government’s planned economic reset with the bloc into uncertainty. The meeting was intended to build on a first summit held in London last year, which resulted in a defence pact and the UK’s return to the Erasmus+ education programme.

For European businesses, the postponement delays critical negotiations to lower trade barriers that have hampered cross-border commerce since the UK left the bloc. The agenda included the integration of UK and EU electricity markets, a step that could improve energy security and lower costs across the continent. Leaders were also set to discuss removing checks on agri-food products, a major friction point for exporters and importers.

Even before Starmer’s departure, the summit had already been pushed back from May due to unresolved disputes over a youth mobility scheme. The UK demanded a cap on the number of participating EU nationals, while the EU insisted that British universities charge home tuition fees to European students rather than higher international rates.

European Council President António Costa confirmed the postponement, stating that Brussels is reassessing the summit but hopes Starmer’s successor will maintain the current trajectory. “My wish is that his successor could give continuity on this good path to reset our relationship with the United Kingdom,” Costa told journalists.

Manchester Mayor Andy Burnham is the likely successor, with a formal decision expected on July 17th if no other candidates emerge. While Burnham has historically supported EU membership, he recently promised not to "re-run" Brexit arguments, signalling he will not push for the country to rejoin.

EU leaders are expected to hold off on setting a new date until after the UK leadership contest and Labour’s party conference in September. A rescheduled summit is unlikely to take place before the autumn.