politics

UK and EU Sign Major Defense and Trade Agreement

The United Kingdom and the European Union have struck a major defense and security pact in what amounts to a new lease on a partnership frayed by the years of Brexit debate. This historic agreement doesn't just promise to bolster European defense in the face of a series of enduring global threats, including the war in Ukraine and questions about U.S. participation in NATO in the future, but also greatly signals what one sense to be a new era of British-Brussels collaboration."

As a concession, the U.K., Europe's second-largest defense spender, is now expected to gain access to the European Union's planned €150 billion defense fund. That brings the opportunity for British defense companies, such as BAE Systems and Rolls-Royce, to compete for joint procurement projects across Europe.

By Oskar Malec | Last Updated: 21 May 2025

'New Era' Defense Cooperation

The deal was unveiled at an official summit in London, attended by European Commission President Ursula von der Leyen and European Council President António Costa. British Prime Minister Keir Starmer welcomed the deal as the start of a "new era" of cooperation and focussed on the reciprocal nature of the agreement. He stressed the necessity of greater cooperation in dealing with cybersecurity, hybrid warfare, maritime security and infrastructure resiliency, calling it "critical in this dangerous new age."

Starmer added that the agreement protects British businesses and jobs, saying that "Britain is out there, back on the world stage," and pledged to work closely with domestic and overseas allies. Von der Leyen responded with a similar claim, noting the need for Europe to act in unity against increasing threats to its security.

 

Trade and Mobility Gains and the Role of Security
It goes well beyond defense, providing solutions to decades-old trade and mobility problems. It provides for ease of process in the case of UK agrarian exports, it brings the possibilities of cooperation in the sphere of energy and it is going to add €10.69 billion of the value to the UK economy by 2040.

In return for eased bureaucracy and border checks, the UK will open its waters to EU fishing vessels for the next 12 years. The agreement also lays out the prospects for a restricted youth mobility scheme and a potential reopening of discussions on the UK rejoining the Erasmus+ student exchange programme.

It is the UK's third major global deal this month, following recent pacts with India and the United States.

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