Overview

• The UK is set to finalize a defence agreement with the EU by May 19, allowing British arms manufacturers to bid for contracts under the €150 billion Security Action for Europe (SAFE) fund.
• In exchange, the UK has agreed to a multi-year freeze on fishing quotas, maintaining European access to British waters, which has drawn criticism from the domestic fishing industry.
• The deal includes dynamic alignment with EU food standards and carbon trading rules, aiming to reduce border checks but potentially complicating future trade talks with the United States.
• France and other EU nations tied British access to the arms fund to fishing concessions, reflecting broader trade-offs between sovereignty and economic integration.
• Starmer has reiterated strong support for Ukraine in recent talks with President Zelensky, aligning the defence pact with broader European security priorities.