23 May 2025
Much has been made of the UK-EU deal announced this week. Depending on where you sit on the still very active Brexit spectrum of political discourse, this is either a total betrayal of a vote from nearly a decade ago, a poor compromise, or a signal of the beginning of the opening up of the UK’s relationship with the EU short of membership.
There are numerous critical areas for the agreement. Still, our primary focus here is on the new partnership struck between Prime Minister Kier Starmer and the Commission President Ursula von der Leyen, which says that the two sides will “swiftly explore” the potential for the UK to gain access to a €150 billion loan program for defence procurement. This fund allows states within the bloc to procure weapons jointly, but is closed to non-EU countries that do not have a defence deal with the UK, as in the case of the UK.
It’s no secret that the geopolitical landscape has changed since the initial turmoil of the Brexit negotiations, both within the UK and between it and its former partners. This is true not only in the obvious and immediate case of the Russian invasion of Ukraine but also in the second election of Donald Trump. While the US voting for an isolationist once might be seen as down to individual circumstances, for it to happen twice points to something deeper in the modern American electorate that has made liberal European nations sit up and take notice.
Such was the impetus for the discussions, during which von der Leyen said the final deal could be reached within “only a few weeks” and highlighted that it would “boost our cooperation in security and defence initiatives.”
While it has been confirmed that the UK would be expected to pay for access to the Security Action for Europe (SAFE) program, which would be central to further talks, it is clear that there is intent on both sides, with it being a particular boon for industry in the UK.
Outside of the cost for the UK, there are echoes of the UK’s initial attempted entry into the European Economic Community in the 1960s, with concerns being raised by the French. In this case, concerns have been raised over the potential impact of British firms’ entry on the French defence industry. Further suggestion is that there is an expectation that this would significantly benefit British firms in this and associated spaces. Disagreements will remain central to further discussions over the coming weeks.
Outside of the specific negotiations of the deal, the security and defence partnerships are committed to strengthening Ukraine’s collaboration, particularly in sanctions against Russia. There will also be closer ties on maritime security and information-sharing in line with the UK’s regaining access to Interpol, military mobility, space security, cyber issues, and countering hybrid threats. Defence Secretary John Healey has been praised for edging the deal over the line.
All in all, Prime Minister Starmer described this as a “reset” in relations. It appears to be the beginning of the next stage of UK-EU relations, both in defence and wider areas that will undoubtedly have wider geopolitical significance.