Ceredigion Preseli MP Ben Lake has called for the UK to rejoin the EU Single Market after meetings took place between the UK and German Governments.

Responding to a press conference in Berlin by British Prime Minister Sir Keir Starmer and German Chancellor Olaf Scholz, Mr Lake said that rejoining single market and customs union would “eradicate” export costs and “boost our economy”.

In a joint statement, Mr Starmer and Mr Scholtz said that they are “launching work on a bilateral cooperation treaty” to be signed “by early next year.”

“This treaty will reflect our status as the closest of partners in Europe, with the strongest possible bilateral co-operation on the issues that matter most to our populations,” they said.

But Mr Starmer said that while he is envisaging a “wider reset” of the UK’s relationship with Europe, he also insisted that the situation remains “really clear” that there will be “no single market, no customs union, no free movement, no going back into the EU.” Mr Lake, Plaid Cymru’s Foreign Affairs spokesperson said: “There has been a welcome shift in tone between the UK Government and our EU partners.

“A shift in tone in itself, however, will not bring about substantial change for Welsh businesses, the wider economy, or young people’s future prospects.

“There needs to be an acknowledgement that small businesses are hindered by red tape that makes exporting to the European continent complex and expensive, with estimates that the additional border checks cost UK businesses up to £7.5 billion a year.

“Membership of the single market and customs union would eradicate these costs, and in turn boost our economy and revive vital trade links.

“The new UK Government is keen to stress that things will get worse before they improve, and it now offers young people little hope for any positive changes beyond that bleak outlook.

“The EU has extended opportunities that could immediately benefit young people in the UK, such as rejoining Erasmus and establishing a youth mobility scheme.

“It is time for the Labour government to be ambitious in creating opportunities for our young people."