Since 2025 the UK has rebuilt ties with the EU through sectoral deals on food, carbon, fishing and defence — without rejoining. Keir Starmer's resignation now tests the 'reset', with direct stakes for Luxembourg.
Keir Starmer is resigning as UK prime minister, leaving Andy Burnham the runaway favourite to lead Labour and the country. His priorities — and his cautious line on Europe — carry stakes for Luxembourg's finance sector and British community.
UK Chancellor Rachel Reeves publicly backed Andy Burnham to become prime minister and pitched policy continuity to markets, while declining to say whether she would keep the Treasury.
Keir Starmer announced his resignation as UK prime minister on 22 June, triggering a Labour leadership contest that Andy Burnham is favoured to win — and casting doubt over a planned UK-EU summit that matters to Luxembourg.
British Prime Minister Keir Starmer announced on 22 June 2026 that he will resign as Labour leader, bowing to a party revolt less than two years after a landslide win. He will stay on as caretaker until a successor is chosen, with nominations opening on 9 July and a new prime minister expected by September. The trigger was rival Andy Burnham's by-election return to Parliament; the change reshuffles a key EU partner at a sensitive moment for Ukraine policy.