EU and UK ink post-Brexit deal on security, fisheries and energy

LONDON — Britain and the European Union agreed a new defense and security pact Monday, as part of a wide-ranging “reset” of relations between London and Brussels after years of Brexit bad blood.

In a sweeping agreement that comes ahead of a summit in London Monday, the two capitals also agreed to extend generous fishing rights for EU fleets in British waters for another 12 years, until 2038 — a major concession on the U.K. side that comes after intensive lobbying from France.

They also agreed to work towards deals in energy, agrifood rules, climate, migration and policing, and mobility of people.

Negotiators worked late into the night on Sunday to strike the accord ahead of the London summit at Lancaster House.

The security and defense pact formalizes cooperation between the two sides on matters such as hybrid warfare, cybersecurity, resilience of critical infrastructure and maritime safety.

On defense, the deal opens the way to the United Kingdom participating in joint EU procurement programs.

However, further negotiations will be required for the U.K. to access the EU’s €150 billion SAFE rearmament program — with budget contributions from London the price of entry.

Common understanding

As well as the defense and security pact, the two sides have agreed a “common understanding” of the topics they want to improve ties on in the coming months.

The documents spell out the parameters of future talks, with negotiations on all subjects expected to start quickly.

Perhaps the most ambitious plan is on energy, where both sides have agreed the U.K. will effectively rejoin the single market for electricity and follow EU regulations, with oversight from the European Court of Justice — a move that could spark anger from Eurosceptics back in London.

The plan was hinted at by Ursula von der Leyen when she came to London last month. She echoed industry concerns that the existing ad hoc post-Brexit arrangements were holding back green investment in the North Sea and raising electricity prices for consumers.

Similar arrangements are expected to be negotiated on sanitary and phytosanitary rules (SPS), which would enable a significant reduction in red tape at Channel ports and the Northern Ireland border — smoothing the flow of trade.

One area of the document where progress is less clear was on the subject of youth mobility, however. One EU diplomat described this policy area — an EU priority — as a “work in progress.”

The two sides have agreed only that they will negotiate a scheme and that it will be time-limited, according to people familiar with the document — and it is left unclear whether numbers will be capped as per British requests.

The U.K. government wants to reduce net migration to Britain and is worried that agreeing to such a scheme will see an influx of European young people moving there, with a corresponding impact on official statistics.

The two sides have however agreed to open talks on how business mobility can be improved — a major ask of firms on both sides of the Channel.

Under the new deal, U.K. Foreign Secretary David Lammy and EU High Representative Kaja Kallas will hold a dialogue once per semester, in addition to regular exchanges on Russia-Ukraine, hybrid threats and Western Balkans, according to one of the diplomats.

EU and U.K. leaders are set to finalize the agreement later on Monday during the London summit.