EU sues UK, dealmaking hopes dashed! London’s relationship reset in jeopardy.

The European Commission has escalated tensions by taking the UK to the European Court of Justice over two critical issues, complicating Sir Keir Starmer’s attempt to "reset" relations with the EU. These cases revolve around the UK’s treatment of EU citizens post-Brexit and its failure to terminate bilateral investment agreements with six member states, shedding a dark cloud over diplomatic efforts.

1. Treatment of EU Citizens
   • The Commission argues that the UK imposed unfair restrictions on the rights of EU citizens’ family members to reside in the country, among other grievances.
   • More than 5 million EU citizens currently hold residence rights in the UK, and several concerns raised by the Commission remain unaddressed, including workers’ rights and extended family members.
2. Bilateral Investment Agreements
   • The UK is under fire for not ending bilateral investment agreements with six member states post-Brexit, a move deemed necessary by the Commission.
   • Downing Street declined to comment on the legal proceedings, emphasizing its dedication to resetting relations with the EU and ensuring Brexit benefits the British people.

The decision to proceed with legal action comes at a critical juncture as the UK and EU strive to overcome years of discord. As Starmer meets EU counterparts for an informal dinner in February, the first such encounter post-Brexit, economic discussions are likely to take center stage.

In a bid to solidify financial access to the EU, UK chancellor Rachel Reeves has lobbied for reduced trade barriers, particularly in the financial services sector left out of the post-Brexit Trade and Cooperation Agreement. Coming negotiations are expected to focus on enhancing trade relations for mutual benefit.

Amidst these legal disputes, the Conservative party has criticized the EU’s stance, emphasizing the importance of defending UK sovereignty. Priti Patel, shadow foreign secretary, cautioned against any moves that might compromise UK autonomy in favor of EU jurisdiction.

In conclusion, the UK faces a challenging period as it navigates legal hurdles with the EU while striving to redefine post-Brexit relations. Finding a balance between sovereignty and cooperation remains paramount as both sides look towards establishing a new chapter in their partnership.