Burnham's 'Breturn' Revives Debate Over Britain's EU Future

Labour Prime Minister Andy Burnham has reignited the debate over Britain's future relationship with the European Union, stating that Brexit 'has done more harm than good' and promising to explore options for a closer partnership.

Burnham's comments at Labour's annual conference in Liverpool on October 29 have been dubbed 'Breturn' by Reuters columnist Mike Dolan, who suggests that even the prospect of Britain moving closer to the EU could influence markets.

The Office for Budget Responsibility estimates that Brexit has reduced long-run UK productivity by 4% compared with remaining in the EU, and imports and exports are expected to be 15% lower than they would have been if Britain had stayed in the bloc.

Burnham's intervention is seen as a potential 'bullish inflection point for sterling assets' by economist Anatole Kaletsky of GaveKal Research, but it remains unclear what specific steps the government will take to move closer to the EU.