Brussels Edition: Brexit’s long shadow

Today marks 10 years since the UK’s momentous vote to leave the EU ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Welcome to the Brussels Edition. I’m Suzanne Lynch, Bloomberg’s Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you’re signed up. Ten years ago today, the UK voted to leave the European Union. The unprecedented move stoked fears that other nations might follow, but Brexit arguably had the opposite effect – acting as a salutary tale of the real-world consequences of quitting the bloc. Countries to the east are lining up to join, with Brussels opening accession talks this month with Ukraine and Moldova. Even eurosceptic figures like Marine Le Pen and Viktor Orban have advocated changing the EU from within, rather than exiting the EU, reflecting the views of their supporters in France and Hungary respectively. According to a recent analysis by Bloomberg Economics, Brexit has cost the UK as much as 4% in lost economic output, unleashing consequences that are “significant and negative.” The EU too has suffered, not least ideologically, losing one of its strongest free-market voices. The bloc’s dismal failure to complete its capital-markets union means it has failed to use the UK’s departure as a springboard to strengthening its own financial services industry. Instead, the City of London remains dominant and an exodus of finance professionals never materialized, helped by domestic policy moves such as relaxing rules around bonuses. The imminent appointment of a seventh British prime minister in 10 years injects more uncertainty into the relationship. Officials in Brussels are unclear about the views of Andy Burnham, Starmer’s likely successor, on EU-UK relations — one of the reasons the European Council is postponing next month’s summit. The two sides had been expecting to make progress on rules governing trade in plant and animal goods, a linking-up of emissions trading systems, and a youth mobility scheme. Negotiating with a lame duck prime minister like Starmer was always going to be a gamble for Brussels, given that it was burned by flip-flopping British prime ministers from Boris Johnson to Theresa May who changed the goalposts many times during the tortuous Brexit negotiations. Nonetheless, European Council President Antonio Costa is still committed to a summit with the next prime minister. In the weeks leading up to Starmer’s resignation, Burnham u-turned on a number of his earlier positions, including ruling out seeking to take Britain back into the EU just eight months after saying he wanted to rejoin. The key question is whether he decides to continue with Starmer’s effort to reset ties or pursue a different path. The Latest The European Commission is preparing to publish preliminary findings accusing Meta of using exploitative design techniques to keep young users hooked, Sam Stolton and Gian Volpicelli report. Fresh from her dustup with Donald Trump, Italian Prime Minister Giorgia Meloni is considering triggering the next general election as soon as April, months ahead of the deadline before the end of 2027, sources say. Chancellor Friedrich Merz said Germany will consider a new mandatory pension contribution that would funnel at least €30 billion a year into a capital-market fund as part of an effort to shore up the country’s retirement system. Business activity in the euro area shrank less than anticipated in June, feeding optimism that the region’s economy can weather faster inflation and the jolt to confidence dealt by the Iran war. The Romanian president will make a final push for a pro-EU government after his candidate failed to win a vote of confidence, prolonging a political deadlock that is stalling key reforms needed to secure EU funding. Seen and Heard on Bloomberg Ukrainian President Volodymyr Zelenskyy needs to do whatever it takes to defuse his escalating dispute with Polish President Karol Nawrocki, writes Marc Champion for Bloomberg Opinion. Zelenskyy’s decision to rename a special forces unit after the controversial World War II Ukrainian Insurgent Army, known as UPA, risks alienating a key ally. And though Nawrocki is cynically weaponizing the UPA issue, Zelenskyy leads a country that relies almost entirely on Poland for its survival in today’s war. Nawrocki and Zelenskyy arrive at a news conference in Warsaw, Poland, on Friday, Dec. 19, 2025. Photographer: Damian Lemanski/Bloomberg Chart of the Day Bargain-hunting consumers across the EU will start feeling the pinch of higher online shopping costs next month when a new levy primarily targeting China comes into force. A €3 duty will apply on items less than €150, a move aimed at slowing the flood of low-priced merchandise from outside the EU sold by sites like Shein and Temu. E-commerce imports into the bloc reached nearly 6 billion items last year, and China accounted for about 90% of merchandise under €150, including fast fashion, beauty products and electronics. Coming up Press conference following meeting of agriculture and fisheries ministers this afternoon in Luxembourg Press conference with European Parliament President Roberta Metsola and Taoiseach Micheál Martin in Dublin this evening NATO Secretary General Mark Rutte meets Trump in Washington tomorrow Final Thought Greece’s rehabilitation from its economic crisis over the past decade has been lauded by euro-region peers and investors alike. But behind the new era of healthy metrics lies a decline in living standards that’s pricing even relatively affluent Greeks out of benefiting from that recovery. Inflation is among the highest in the euro area, while the average annual salary of about €18,000 is less than half that of the wider EU. Like the Brussels Edition? Don’t keep it to yourself. Colleagues and friends can sign up here. How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know. 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