Simon Dawson / No 10 Downing Street
A breakthrough deal is expected at the upcoming UK-EU summit
The leader of Britain’s Labour Party, Keir Starmer, has decided to reset relations with the European Union, which have been in decline since Brexit. During his election campaign, Keir Starmer promised to mend the strained relationship and address the issues that have hindered the UK’s economic growth.
One of the main agreements expected at the summit is the approval of British companies’ applications to participate in the new European defense fund, SAFE (Security Action for Europe). Currently valued at €150 billion, the fund finances the production and procurement of artillery systems, air defense systems, missile launchers, drones, and other military equipment.
Because the UK did not sign a defense or security agreement with Brussels after Brexit, major British companies such as BAE Systems and Babcock were excluded from the fund. Norway, Moldova, South Korea, Japan, Albania, and North Macedonia took their places.
Furthermore, Starmer plans to announce a £30 million deal with Syos Aerospace of New Zealand, which will manufacture drones in Hampshire, England.
French President Emmanuel Macron, who played a key role in establishing the fund, has repeatedly emphasized his «Buy French» initiative, which aims to promote French products over American ones.
He stated, «Those buying Patriot systems should consider the next-generation Franco-Italian SAMP/T, and those interested in the F-35 may find our Rafale a better fit».
Amid closer UK-France cooperation on Ukraine, Downing Street is increasingly confident that a defense pact will be signed, allowing British companies to access the SAFE fund.
However, it isn’t that simple. During negotiations, Macron insisted that British participation be linked to reduced UK quotas for fishing haddock, herring, and cod. Yes, you read that right: fighter jets and haddock. After Brexit, European fishermen — particularly the French, who are highly active in northern waters — were only permitted to catch 75% of their pre-Brexit quotas.
The current agreement is reviewed annually and is set to expire in 2026. The new package includes a multiyear formula similar to the current arrangement between the EU and Norway in an attempt to appease both parties. Quotas will likely be frozen.
For the British, fishing is as much of an obsession as it is for the French. It symbolizes control over national waters, and Brexit restored the long-sought sovereignty that became an almost imperial symbol. During negotiations, Starmer had to consider the concerns of coastal residents, many of whom rely on fishing, as well as those who voted for Brexit.
While diplomats wrangled over quotas, Poland and the Baltic states were even taken aback by the intensity with which the French and British insisted on their fishing rights amid a war on Europe’s doorstep. EU Chief Diplomat Kaja Kallas remarked, «I’m surprised how important fish have become».
Ultimately, the British conceded when Starmer was presented with data showing that UK defense exports totaled £14.5 billion in 2023, while fish sales amounted to £1.7 billion. Furthermore, it was revealed years ago that British fish were being caught by UK ships registered in Iceland (which is not in the EU), Spain, and the Netherlands — under the guise of being European.
Another significant announcement expected at the summit is that the UK has agreed to align its food standards dynamically with EU regulations. This essentially means the UK will adjust its laws to match European standards. Currently, discrepancies in standard interpretations lead to lengthy sanitary inspections of each imported steak, causing massive truck backups at Dover and other major ports.
However, Starmer will not have a say in setting these standards, which limits his ability to negotiate food trade deals with non-EU countries. Thus, the truck queues may not disappear, and the only difference will be the non-European license plates on the vehicles.
The UK also plans to propose a new «youth mobility scheme» for Europe. Previously, exchange opportunities were sharply restricted, and simple visas offered little more than a tour of the Tower of London. Currently, young Europeans aged 18–30 can apply for a one-year work visa, though approval is not guaranteed.
The new plan would allow tens of thousands of young students and workers to come to the UK for two years, with the possibility of extending their stay for an additional year. However, the «Australian model» may be implemented, which would require immigrants to pay additional fees for public health insurance without eligibility for benefits. Young Britons would receive the same rights in the EU.
Nevertheless, the proposal is still in its early stages. For example, Home Secretary Yvette Cooper is skeptical about allowing thousands of young people in at once. Her ministry suggests keeping the one-year visa limit. The Home Office might compromise if youth mobility figures were excluded from general immigration statistics, for which they would be held accountable.
Meanwhile, Chancellor Rachel Reeves argues that economic forecasts show an influx of young workers would boost the economy.
The UK government has made serious concessions in preparation for the May summit, which could be pivotal. However, Starmer must strike a delicate balance, as the UK’s primary partner, the US, still looms large. However, Trump has become increasingly unpredictable. He could easily misinterpret the UK’s pivot to Europe and British companies’ participation in a multibillion-euro defense fund as a betrayal and threaten retaliation.