UK election will determine direction of EU relations

Significance Labour has indicated that, if elected, it would pursue closer regulatory alignment and deals on security and mobility with the EU. The party has denied reports it might consider rejoining the customs union, though this might reflect pre-electoral caution rather than a firm commitment. Impacts A Labour government would abandon regulatory divergence, thus providing more clarity to businesses trading with the EU. The prospect of different UK and EU carbon tax regimes could trigger further uncertainty and instability in Northern Ireland. Regardless of the election result, UK-EU defence cooperation will be primarily a bilateral matter between London and individual EU states.