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The Premier's very notable shift on the UK's post-Brexit connections to the bloc recently was designed to send a message to industry, to Brussels, and to European partners, as well as his political supporters.

A Revised Process for Dialogue

Closer post-Brexit trade links are now expected to be considered as part of an annual process of government-to-government discussions instead of exclusively at the current year's formal review of the trade and cooperation agreement.

This served as the stated position to growing calls regarding a wider-ranging Brexit reset that involved re-entering the customs union.

Political Momentum

Some MPs, trade union officials and senior ministers have joined calls to proposals crystallised by parliamentary moves last year that culminated in a non-binding vote.

"We are better looking to the single market as opposed to the customs bloc for our closer integration," the Prime Minister said.

He stated unequivocally that re-entering the tariff union was not the priority, as it conflicts with what he considers a key achievement of the previous year: the signing of best-in-class deals with the United States and India, with additional in the pipeline in the Gulf region.

Prioritising the Internal Market

Instead of the customs union, his primary aim is on forging a "more integrated partnership" with the EU's single market, which would not mean abandoning those international pacts with other nations.

When the UK officially exited the EU in the start of 2021, the negotiated settlement emphasised freedom from EU rules rather than seamless commerce for UK businesses across Europe.

The present recalibration envisages synchronising with EU rules in specific fields to facilitate the free flow of trade: agricultural products, power, and carbon trading.

Business Calls

A leading commercial body last month published a detailed set of further requests in various industries to assist exporters deal with post-Brexit red tape that has hit the trade of goods.

Its internal research reported that a significant number of companies surveyed agreed that the UK-EU trade deal was impeding sales growth.

A host of further domains could, potentially, see a parallel method – alignment with internal market standards – in exchange for lowering post-exit friction across production, in the car industry, chemicals, or for example in VAT procedures.

European Perception

Member states were disappointed by the modest aims in last year's reset, specifically the British rejection of ideas floated by some analysts regarding the simplified access of British exports to the single market.

The specific detail on energy cooperation and food and farm standards is still to be agreed. A proposal for UK manufacturers to be part of a €150bn security initiative has been delayed over the scale of the financial commitment, after opposition from the French government. Another nation has joined the initiative.

Geopolitical Context

The UK has agreed a deal to return to a university exchange programme and to continue talks on a young workers initiative. This has helped clear the way for further UK-EU talks.

Analysts close to government note that the issuing of a American national security strategy has also changed the context on UK European policy.

The document noted that the US would "encourage pushback" to Europe's current trajectory and applauded the "increasing clout" of nationalist groups.

In government circles, there is some recognition that the international situation has evolved further.

Political Considerations

Domestically, the leadership also expects being outflanked on European policy not just one political rival, but also others, which is focusing on its stronghold regions in local votes.

The Leader's weekend remarks are borne of a intersection of business needs, domestic pressures and global dynamics as the UK enters a year that will commemorate the 10th anniversary of the landmark EU vote.