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UK and EU agree post-Brexit reset at showpiece summit

by Investor News Today
May 19, 2025
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UK and EU agree post-Brexit reset at showpiece summit
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London and Brussels have agreed a post-Brexit reset of relations that Prime Minister Sir Keir Starmer claimed could be value £9bn to the UK, however he confronted rapid claims he had “surrendered” by agreeing to maintain British fishing grounds open to EU boats for 12 extra years.

The UK concession on fishing opened the way in which for a wide-ranging deal together with a safety and defence pact and the promised elimination of a lot purple tape for British farm exports and power buying and selling with the EU.

The settlement, described by European Fee president Ursula von der Leyen as “historic”, was unveiled at a London summit on Monday, the primary between the 2 sides because the UK left the EU in 2020.

Britain and the EU are searching for to deepen their ties 5 years after Brexit, as Donald Trump’s US presidency strains transatlantic relations over points together with commerce tariffs and Russia’s full-scale invasion of Ukraine.

Talking after the settlement was unveiled, UK chancellor Rachel Reeves stated she hoped it could result in additional EU offers to clean commerce.

Referring to Monday’s settlement, she added: “It’s important however there are issues I feel we may do to make commerce simpler.” She was upset the deal didn’t embody plans to assist British musicians to tour in Europe.

Britain had beforehand proposed an extension of EU entry to its fishing grounds of solely 4 to 5 years, however Starmer’s Labour authorities agreed to a longer-term deal in return for open-ended provisions to ease UK meals merchandise’ entry into the bloc. Present entry preparations for EU fishermen to UK waters had been on account of expire in 2026.

Von der Leyen stated the settlement marked a “new chapter” within the EU’s relationship with the UK, whereas Starmer hailed it as a “frequent sense, sensible” resolution that moved on from the “stale outdated debates” about Brexit.

However Conservative chief Kemi Badenoch denounced the deal, saying the federal government had “surrendered” on fisheries and the truth that Starmer had agreed to just accept Brussels guidelines on meals requirements to facilitate simpler commerce.

Reform UK chief Nigel Farage wrote within the Every day Categorical: “This isn’t Starmer’s first time bending over backwards to appease EU pursuits. His betrayal of British jobs and nationwide priorities has been evident because the day he took workplace.”

Starmer stated that, along with a plan to hyperlink the UK and EU’s carbon emissions buying and selling programs, the streamlined meals exports guidelines — delivered by a proposed veterinary settlement — would carry £9bn of financial advantages to Britain.

From left: UK Prime Minister Sir Keir Starmer and foreign secretary David Lammy speak to Kaja Kallas, the EU high representative for foreign affairs; Ursula von der Leyen, European Commission president; and António Costa, European Council president, at the UK-EU summit at Lancaster House
The 2 sides in talks at Lancaster Home on Monday © Kin Cheung/PA

The UK has conceded that eradicating limitations to commerce in foodstuffs would require Britain to “dynamically align”, or keep in step, with EU rules as they modify. The UK will even make funds to the EU to fund work on meals and animal requirements.

The brand new guidelines would assist Northern Eire, which is handled in another way to the remainder of the UK beneath the phrases of Britain’s departure from the EU, by lowering checks on meals and animals crossing the Irish Sea.

However Elspeth Macdonald, chief govt of the Scottish Fishermen’s Federation, described the UK-EU deal as “a horror present” and “far worse” than the earlier Brexit settlement finalised by former UK Prime Minister Boris Johnson.

Jonathan Reynolds, UK enterprise secretary, stated the fishing sector would profit from the promised veterinary deal, arguing it could assist the trade promote to the EU.

The British authorities additionally introduced it was offering £360mn for fishing and tourism in coastal areas.

UK food and drinks exports to the EU, a far larger sector than the politically charged fisheries trade, had been value £14bn in 2024, in accordance with the Meals and Drink Federation, a commerce group.

Economists at Aston College have estimated that UK agrifood exports to the EU could possibly be boosted by greater than 20 per cent on the again of a vet deal. In contrast, the UK fishing trade accounts for under about 0.04 per cent of Britain’s nationwide output.

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The UK and the EU signed a communiqué promising deeper financial co-operation throughout a two-hour assembly at Lancaster Home involving Starmer, von der Leyen and European Council president António Costa.

The 2 sides signed a defence and safety partnership that would give the UK defence sector entry to a €150bn fund of cheap loans backed by the EU finances, topic to a second extra detailed settlement.

Starmer claimed the deal would permit British holidaymakers to enter the EU extra rapidly by the usage of passport e-gates, after the European Fee indicated there have been no authorized obstacles. Nonetheless, closing choices have to be taken by EU member states.

Really useful

Donald Tusk, Friedrich Merz, Emmanuel Macron and Sir Keir Starmer at the EU summit in Tirana

Either side had been locked in intense haggling within the early hours of Monday over particulars of their revamped relationship, together with wording a few proposed youth mobility scheme.

Tensions stay over the youth scheme, with the settlement containing solely a unfastened dedication to “work in the direction of” such an association and Britain’s return to the Erasmus scholar change programme.

Starmer stated the scheme could be time-limited, topic to quantity caps, and wouldn’t decrease college charges for EU college students at British universities to UK ranges, which had been a key demand of the bloc.

The general deal was unlocked when the UK agreed to open fishing waters for 12 years and the EU granted London’s late request to exempt extra British metal from emergency tariffs.

The fee agreed to ask member states to grant a assured tariff-free quota, which the UK stated was value £15mn a yr to its metal trade.

Further reporting by David Sheppard and Anna Gross



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