Why the EU needs the UK to stay competitive

The automotive sector offers the clearest evidence of this interdependence. In 2025, the EU exported €345.4 billion in goods to the UK, with British roads serving as the destination for 29% of all exported EU vehicles. Components frequently cross the Channel multiple times during assembly, binding firms like BMW, Stellantis, and Bosch into a single, fragile ecosystem. Disrupting these links to favor domestic-only production would introduce unnecessary costs and friction for both sides.

This integration extends into the energy transition. Major UK projects like Hinkley Point C and Sizewell C provide approximately €6 billion in direct economic benefits to European suppliers. Similarly, the UK’s €2.3 billion Electric Car Grant has fueled over 150,000 sales of EU-built vehicles. Industry giants and trade groups, including the European Automobile Manufacturers Association and IndustriAll Europe, have warned that excluding British firms from the bloc’s Industrial Accelerator Act would undermine the very transition Europe aims to lead.

Technological sovereignty is equally dependent on these cross-border ties. With the UK accounting for 16% of the EU’s digital tech service exports and providing nearly $15 billion in venture capital to European tech companies in 2025, the relationship is a cornerstone of regional innovation. By focusing on shared security standards rather than restrictive geography, the EU can leverage British infrastructure, such as its 2.9-gigawatt data center capacity, to scale its own AI and compute ambitions. Cooperation, rather than protectionism, remains the most viable path toward a resilient European economy.