In a significant shift prompted by global uncertainties, Roula Khalaf, the Editor of the Financial Times, has highlighted the intensifying resolve of the European Union (EU) to formalize a defence and security pact with the United Kingdom. This agreement aims to facilitate the participation of British arms companies in collective arms procurement, marking a notable development in post-Brexit relations between the UK and the EU.

The backdrop of this emerging alliance is deeply rooted in the geopolitical upheaval instigated by the Trump administration's foreign policy. President Donald Trumps public threats to reconsider the United States' commitment to protecting NATO allies, coupled with his overt efforts to cozy up to Russia, have catalyzed a collective response from European nations. Many countries are now escalating their defence spending and exploring ways to pool military capabilities, particularly as they consider how to best support Ukraine in the wake of a possible peace deal brokered by the U.S.

At the forefront of this initiative is a coalition of the willing, co-led by France and the UK, which has set the stage for the anticipated signing of the defence pact next month during a summit of EU leaders. This summit, hosted by British Prime Minister Sir Keir Starmer, will be a historic occasion as it marks the first meeting of its kind since the UK's departure from the EU.

An EU diplomat succinctly expressed the sentiment within the bloc: On defence, the Brits are basically back inside the tent. We just need this agreement to affirm that. This shared determination was evident in a meeting held by EU ambassadors last Friday, where multiple diplomats indicated that a majority of member states are in favor of formalizing not only the defence and security pact but also a broader statement addressing pressing geopolitical issues.

Importantly, the European Commission has stipulated that the signing of this agreement is a prerequisite for the UKs involvement in a proposed 150 billion loan program. This program would enable governments to access funds for military procurement, ensuring that the necessary resources are available to bolster collective security.

In a demonstration of collaborative synergy, British Defence Secretary John Healey recently co-hosted a meeting in Brussels with his French counterpart, discussing coalition strategies. This was followed by a significant meeting in Germany, where Healey, alongside his German counterpart, addressed military supply needs for Ukraine.

Simultaneously, British Chancellor Rachel Reeves participated in discussions with EU finance ministers in Warsaw, advocating for enhanced defence financing cooperation with European allies. This aligns with the broader strategy of reinforcing Europes military capabilities in response to current global threats.

As part of these ongoing negotiations, EU capitals are also working to finalize two additional agreements with the UK that will address critical issues such as energy, migration, and fisheries. However, the fisheries agreement is particularly contentious, with France, Denmark, and other coastal EU states advocating for the preservation of their access to UK waters when the current agreement expires in 2026.

The French position, reiterated in discussions among EU ambassadors, emphasizes that any UK attempt to renegotiate fishing rights could complicate broader negotiations, including those surrounding the defence pact. An EU diplomat remarked, The war, Trump, and re-arming Europe is bringing France and the UK closer. But we need goodwill on some other things to foster a stronger EU-UK relationship.

Both Paris and London are under pressure to strike a balance. Other EU capitals have expressed concerns that allowing fishing rightsa politically sensitive but economically minor issueto hinder progress on vital security agreements would be absurd. One diplomat observed, The French are looking at this with a magnifying glass while everyone else just sees the big broad obvious strategic benefit of it.

The French embassy to the EU has refrained from commenting on these developments. Conversely, Denmark, which also has a significant fishing sector, has expressed openness to pursuing closer cooperation with non-EU countries. Danish Economy Minister Stephanie Lose noted to the Financial Times, We know that we have close bonds with Norway, with the UK, so of course we should be open to exploring other things that could actually help strengthen Europe.

The proposed 150 billion programme aims to provide loans backed by the EUs common budget for joint procurement of essential military equipment, such as air and missile defence systems. The impending defence pact would allow British defence firms, many of which maintain established relationships with their counterparts in Italy, Germany, Sweden, and other EU countries, to engage fully in this collaborative initiative.

Support for increased cooperation with the UK is also echoed by key EU leaders. Ursula von der Leyen, the president of the European Commission, and Antnio Costa, the EU Council president representing the bloc's governments, have both expressed encouragement for this enhanced partnership. Valdis Dombrovskis, the EU economy commissioner, stated, To strengthen Europes defence, we must do many things in the EU but we must also do many things outside of the EU, so we are open to that engagement.