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In late August 2024, UK Prime Minister Keir Starmer made a pivotal visit to Germany, marking his first bilateral trip since taking office. This visit was not merely a ceremonial gesture; it represented a significant effort to reset the UK’s relationship with the European Union (EU) in the wake of Brexit. Central to the discussions were issues of migration, labour, and the broader economic implications for both the UK and the EU.

A New Bilateral Treaty

During his visit, Starmer met with German Chancellor Olaf Scholz to launch negotiations on a new bilateral treaty. This ambitious agreement aims to strengthen cooperation in various sectors, including trade, technology, and energy. Starmer emphasized that this treaty represents a “once-in-a-generation chance” to enhance economic ties between the UK and Germany, which is Europe’s largest economy and the UK’s second-largest trading partner. The treaty is expected to be finalized by early 2025 and will cover critical areas such as market access, supply chain resilience, and joint action on illegal migration.

Migration and Labour Dynamics Post-Brexit

The topic of migration has been a contentious issue in UK politics, particularly following Brexit, which ended the free movement of people between the UK and EU. Prior to Brexit, EU nationals constituted a significant portion of the UK’s workforce, filling critical roles across various sectors, especially in low-wage jobs. However, since the implementation of the new post-Brexit immigration system, there has been a marked decline in EU migrants seeking work in the UK. In 2023, EU citizens represented only 7% of work visa grants in the UK, a stark contrast to the pre-Brexit era when they were the primary source of work-related migration.Starmer’s government recognizes the need to address labour shortages in sectors heavily reliant on EU workers, such as agriculture, hospitality, and healthcare. The new immigration policy has made it more challenging for employers to recruit from the EU, as many low-skilled jobs are no longer eligible for work visas. This has led to increased pressure on the UK economy, with businesses struggling to fill vacancies and maintain productivity.

The Future of Migration Labour

Starmer’s visit to Germany also focused on collaborative efforts to tackle illegal migration, which has become a pressing issue for both countries. The Prime Minister and Chancellor Scholz discussed enhancing intelligence sharing to combat organized immigration crime. This is particularly relevant in light of recent unrest in the UK linked to anti-immigration sentiments, which have been exacerbated by misinformation and far-right rhetoric.The proposed treaty aims to create a framework for managing migration more effectively. This includes exploring legal pathways for migration that could facilitate the movement of skilled workers between the UK and EU. Starmer has hinted at the possibility of introducing a visa scheme for young EU nationals, which could help bridge the gap left by the decline in EU migration.

Economic Implications for the EU and UK

The economic implications of Starmer’s visit and the anticipated treaty are significant. Strengthening ties with Germany could lead to increased trade and investment, benefiting both economies. Germany accounts for approximately 8.5% of all UK trade, and enhancing this relationship could help the UK recover from the economic challenges posed by Brexit.Moreover, the focus on clean energy and technology collaboration aligns with broader EU goals of sustainability and innovation. As both the UK and EU navigate the complexities of the global economy, fostering partnerships in these sectors could lead to mutual benefits, including job creation and economic growth.

Conclusion

Keir Starmer’s visit to Germany signals a renewed commitment to rebuilding the UK’s relationship with the EU and addressing critical issues surrounding migration and labour. The proposed bilateral treaty represents a strategic opportunity to enhance economic ties and tackle shared challenges, particularly in the realm of illegal migration. As the UK continues to adapt to its post-Brexit reality, the outcomes of this visit could play a crucial role in shaping the future of migration labour and economic collaboration between the UK and EU. The success of these initiatives will depend on the ability of both parties to navigate the complexities of their new relationship while addressing the pressing needs of their respective economies.

Written by: Nenad Stekić