Posted By Global Banking and Finance Review
Posted on May 19, 2025
BRUSSELS (Reuters) -The European Union and Britain reached a tentative agreement on defence and security, fisheries and youth mobility ahead of a EU-UK summit on Monday, paving the way for British firms to participate in large EU defence contracts, EU officials said.
Representatives of EU governments in Brussels received a text of a Common Understanding between Britain and the EU and the document is now being approved by all 27 EU governments, the officials said.
British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen and European Council President Antonio Costa will meet later on Monday in London.
"There is an agreement ... on the different texts and parallel aspects of the EU-UK Summit," one EU diplomat said.
"From my understanding, all member states seem to be happy with what's put on the table as the summit is about to start. There is now an ongoing written procedure to have the formal agreement of all member states but it shouldn’t cause any problem," the diplomat said.
Britain is poised to agree the most significant reset of ties with the European Union since Brexit on Monday, seeking closer collaboration on trade and defence to help grow the economy and boost security on the continent.
"With the positive signs coming from the negotiators in London in the last days and hours, the scene is now all set for a very successful and constructive reset of the relationship, that both the EU and UK will benefit from," the diplomat said.
(Reporting by Jan Strupczewski;Editing by Sudip Kar-Gupta)
