Britain and European Union seal landmark post-Brexit reset on trade and defence: Check details

In the most significant shift in UK-EU relations since Brexit, Britain and the European Union sealed a comprehensive reset of their defence and trade ties on Monday. The deal was finalised at the first formal UK-EU summit since the UK left the bloc in 2020, hosted by Prime Minister Keir Starmer in London.

“This deal is a win-win,” said Keir Starmer. “Britain is back on the world stage.”

European Commission President Ursula von der Leyen echoed the sentiment, calling it “a historic moment” and a “message to the world” about Europe's unity in times of crisis.

€150 billion defence pact unlocks access for UK

A key highlight of the reset is a new UK-EU defence and security partnership. Under the agreement, Britain will gain access to a €150 billion ($170 billion) EU defence loan programme designed to fund military procurement, including support for Ukraine.

British defence giants like BAE Systems, Rolls-Royce, and Babcock can now participate in EU joint procurement projects.

“At a time of global instability, and when our continent faces the greatest threat it has for generations, we in Europe stick together,” von der Leyen said.

Food trade reforms aim to cut red tape

The agreement introduces significant easing of border checks on food and agricultural products. This will allow British goods such as sausages and burgers to re-enter EU markets.

“We know we've had lorries waiting for 16 hours, fresh food in the back not able to be exported,” said Cabinet Office minister Nick Thomas-Symonds. “We absolutely want to reduce that.”

Officials estimate these reforms could add nearly £9 billion ($12.1 billion) to the UK economy by 2040, lower food prices, and improve supply chain efficiency.

Fishing access extended through 2038

Fishing, one of Brexit’s most symbolically charged issues, saw a compromise. The UK granted EU vessels continued access to British waters for 12 more years, until 2038. In exchange, the EU agreed to permanently reduce paperwork and border checks that had hampered UK seafood exporters.

Though economically minor, fishing remains politically sensitive. Disputes over it nearly derailed the original Brexit deal in 2020.

Youth mobility and Erasmus back on the table

A tentative agreement was also reached on a youth mobility plan, aimed at allowing young Britons and Europeans to live and work temporarily in each other’s territories.

Though full details are yet to be agreed, the UK is also in talks to rejoin the Erasmus student exchange programme, which it left after Brexit.

From Brexit division to new cooperation

The UK’s 2016 vote to leave the EU triggered years of political turbulence, including five prime ministers and strained ties with Brussels. But recent collaboration on global issues—including Ukraine—helped restore trust.

Von der Leyen concluded: “The UK and EU are natural partners standing side-by-side on the global stage.”