Sun, 18 May 2025

Sun, 18 May 2025 Defence deals and palace invites: UK and EU haggle before first summit since Brexit

Defence deals, fishing rights and closer economic ties among the talking points at Downing Street.
Trade:
* The EU has refused to allow UK companies to bid for contracts under the EU's new re-armament scheme, SAFE (Security Action for Europe), citing concerns about non-EU countries demanding similar access.
* The UK is pushing for more flexible thinking from Brussels on trade and security issues.
* Other key trade-related issues include: + Fishing rights: Talks over future fishing access should not block a defense deal, says the EU's foreign policy chief. + Defense industrial cooperation: The UK wants its defense companies to be allowed to bid for contracts under SAFE. Defense and Security:
* The EU-UK summit will focus on signing a defense and security pact, which is not a legally binding document.
* The UK wants access to the emerging EU defense programs, citing its leadership role in defending Ukraine.
* France has expressed concerns about non-EU companies bidding for EU defense contracts, including those from the US and Canada. It argues that EU taxpayers' money should be spent with EU companies to boost EU economies. EU's New Re-armament Scheme:
* The SAFE program is a work-in-progress, driven by rapidly changing geopolitics, including fears of US withdrawal from Europe.
* An agreement with the UK in this defense industrial context will be brand new and bespoke. German Perspective:
* Germany's new Chancellor Friedrich Merz has stated that "a unified Europe is the absolute priority" in the current geopolitical setting.
* Germany is seen as a key player in supporting the UK in its negotiations with the EU on defense and economic issues. Overall, the article highlights the complexities and challenges involved in achieving a comprehensive defense and security agreement between the EU and the UK. It also touches on the broader implications of increasing defense spending for national economies and public services.
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