The Prime Minister has been issued with a warning over his pledge to reset the UK's relationship with the EU as fears have mounted over a Eurozone meltdown.
The European Central Bank (ECB) noted a loss of £6.8billion last year - making it the second year that the Eurozone has suffered a hefty setback.
It is expected that this latest blow to Europe’s finances should act as a warning to Keir Starmer as he attempts to drive Britain closer to Brussels, according to a British banking expert.
Concerns over the Eurozone’s fiscal stability have increasingly come to light as the full financial loss will be offset against its future profits - which means there will not be any profit distribution to national central banks.
The financial warning comes as Keir Starmer pushes to forge a closer relationship with the EU
PA
In 2023, the Eurozone made a loss of £6.52billion but had been supported by previous provisions.
However, these same provisions have ceased to exist to serve such a purpose.
Founder of London’s Lyddon Consulting Services Bob Lyddon said: "This does not mean it has gone into bankruptcy or is insolvent (unable to meet its liabilities as they fall due).
"But it shines an unwelcome spotlight on the euro, and at a most inopportune time, not least for Keir Starmer as he tries to revive our relationship with the EU," he told the Express.
LATEST DEVELOPMENTS:
"Starmer shouldn't be gulled into getting us drawn into an unfolding disaster in which we might end up importing the Eurozone youth unemployment, bailing out their fishing Industry and buying more of their armaments."
The economic warning comes as Labour is trying to bring Britain closer to Brussels.
Most recently, Starmer is expected to grant Europe an "Australian-style" youth mobility scheme - allowing thousands of young people to live and work in the UK for up to three years.
As a reciprocal scheme, the deal would permit young Britons between the ages of 18 and 30 into the economic bloc's member states as well.
The next key summit with European leaders will be held in London on May 19
PA
Britain would cap the number of youths allowed into the country to soothe the Home Office's increasing concerns over the scheme's potential effect on immigration.
Additionally, under the deal, those arriving in the UK must pay an NHS surcharge and would not be allowed to claim benefits.
The next key summit with European leaders will be held in London on May 19 - when it is expected that a fully-fledged post-Brexit reset would be outlined for the public.
However, several European nations have insisted that implementation of the youth mobility scheme is vital for such a reset.
