The Labour party doesn’t like discussing aligning the UK economy with the EU in case it scares the voters. If it gets elected next week, it won’t have much choice. Managing divergence often means reacting to initiatives from Brussels more than making free choices as a sovereign nation. And to complicate matters, the UK could face rising pressure from the US pulling it away from the EU.
But failing to align with or join the EU’s mechanism would put carbon tariffs on Britain’s electricity exports into the EU and threaten its already beleaguered steel industry. Few informed observers inside or outside government have taken Badenoch’s declarations of independence seriously, and the FT has now reported Labour is wisely planning to join or align with the EU’s CBAM. More such choices are on their way.