Prime Minister Keir Starmer, flanked by European Commission head Ursula von der Leyen and European Council chief António Costa at London’s Lancaster House, said the package marked “a new era.”
Von der Leyen called it proof that “in a time of global instability we in Europe stick together.”
What’s in the deal
- Defense & industry: A security pact lets the U.K. plug into EU joint procurement programs worth up to €150 billion ($163 billion) and opens the door for BAE, Rolls-Royce and Babcock to bid on rearmament projects.
- Trade: Red tape is cut for British agri-food exports, and EU visitors can use fast e-gates at U.K. airports. London says cheaper food and energy gains could add nearly £9 billion ($11.6 billion) to its £2.6 trillion economy by 2040.
- Fishing: EU and British boats keep access to each other’s waters for 12 years in return for lighter paperwork—spurring fury from U.K. fishermen who had expected tighter control.
- Mobility: Both sides outlined a future scheme for young people to live and work across the Channel and began talks on re-joining the Erasmus+ student exchange.
The accord follows Starmer’s recent deals with India and the United States, and is aimed at boosting business confidence sapped since Britain’s 2020 EU exit, according to Reuters.
Politics on both shores
Starmer, who campaigned against Brexit in 2016, is gambling that benefits such as quicker passport control will offset cries of “betrayal” from Brexit firebrand Nigel Farage, Reuters reported.
The opposition Conservatives—architects of the original divorce treaty—accused Starmer of accepting EU rules “through the back door.”
Farage blasted the fishing chapter as “abject surrender.”
Still, polls show most Britons want smoother EU ties, even if they do not favor re-joining. Labour MP Chris Curtis said the reset “fixes problems the Conservatives created” and reflects public realism that “trade-offs are unavoidable," according to Reuters.
Trump factor
European capitals moved after Trump slapped steep tariffs on EU goods and warned allies to shoulder more defense costs, fears that tightened cooperation on Ukraine and softened EU resistance to British “cherry-picking.”
Accepting EU oversight of food standards—long a taboo for London—was the price for scrapping costly health certificates, but trade analysts said the concession makes economic sense.
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Source: Reuters