French Finance Minister Roland Lescure has invited Britain to “come all the way” back to the European Union, as Prime Minister Andy Burnham signals that a future Labour government could consider holding a second referendum on the country’s relationship with the bloc.
His remarks come as Brexit’s long-term economic impact faces renewed scrutiny, with growing questions over whether closer ties with the EU could help British businesses and strengthen vulnerable supply chains.
Andy Burnham recently stated that Britain needed to “consider the options” available to the country, ranging from maintaining its current relationship with the EU to rejoining the customs union or single market, or going “all the way” back into the bloc.
In an interview, the French Finance Minister highlighted that, “British people decided, and that’s obviously their 100% right, and if they’re willing to come back, they will have to decide. But what I can tell them is: come back, anytime.”
Roland Lescure acknowledged that EU membership brings difficulties but argued that membership gives European countries greater capacity to respond collectively to global challenges.
This is because of the potential impact of EU industrial policy on British manufacturers. Burnham has previously warned that keeping Britain outside the planned European rules could leave UK industry exposed and disrupt supply chains.
The proposed Made in Europe scheme is intended to strengthen European industry against Chinese competition by giving companies within the bloc greater priority for public contracts and subsidies.
Asked whether Britain could be kept outside the scheme, the French Finance Minister stated, “Come back, and you’ll be at the table, and we discuss all these things together.”
Roland Lescure Confronts Pressure Over France’s Youth
Lescure’s comments on Britain come alongside a separate dilemma facing the French government, as student protests and concerns over the status of education put pressure on policymakers to address the financial situation of younger generations.
More than 500 schools were fully or partially shut as of Wednesday amid protests over conditions in the education system, with hundreds of thousands of people taking to the streets.
The demonstrations have highlighted wider concerns about the prospects facing young people at a time when governments across Europe are grappling with rising demands on public finances.
Lescure acknowledged the difficulties facing the younger generation, describing it as a “tough world” and recognising the anxiety surrounding their future. “Our duty as leaders is to listen to them,” he added.
The Finance Minister also confronted the difficult choices created by competing demands on the French budget. Rising spending on healthcare and pensions has left less room for investment in younger generations, creating pressure to rebalance public expenditure.
“It’s hard to tell young people we’re not going to have the money for you because we’re spending a lot on health and pensions. We’re getting people more healthy. People live longer. But we cannot just say ‘this is fine’ and then we don’t have money left for the kids, so we need to rebalance that.”
The government’s forthcoming budget is expected to reflect that approach, with the Finance Minister indicating that health spending will be reduced and retired people will be asked to accept a pension increase below the rate of inflation next year.
The measures highlight the political difficulty of reallocating public resources between generations. While healthcare and pensions respond to the needs of an ageing population, the government is also facing demands for greater investment in schools and opportunities for young people.
Ronald Lescure acknowledged that not every French school is in poor condition but promised further investment in education where necessary. “If we need to do more, we’ll have to see,” he added.
France Faces Mounting Deficit and Borrowing Pressures
The pressure on France’s finances extends beyond education and public spending, with the government confronting a public deficit that Lescure described as “alarming.”
France’s annual public borrowing has risen above 5% of GDP, increasing concerns over the sustainability of government finances and the cost of servicing its debt.
Ronald Lescure admitted that the extent of borrowing necessitates quick action, warning that postponing difficult decisions could result in France facing harsher measures later. “That’s why we need to act now,” he stated.
Investors’ demands for greater yields on French government debt and the growing difference between French and German borrowing prices are other indications of the strain.
While conceding that borrowing had become “more expensive,” Lescure insisted that France was still able to issue its debt and denied that there was a problem with debt issuance now.
The question of whether France may eventually need assistance from the European Central Bank if financial strains increased was also posed to the Finance Minister.
According to Ronald Lescure, his responsibility is to ensure the country does not reach that point.
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