On 28 August 2024, UK and German leaders Sir Keir Starmer and German Chancellor Olaf Scholz agreed to work on an ambitious treaty covering issues from defence to trade, which would be part of a fresh start for the UK’s relations with the European Union (EU). As part of the same drive to improve relations with the EU, Starmer also met with French president Emmanuel Macron in Paris on 29 August.
After UK Prime Minister, Sir Keir Starmer, spoke at a joint news conference with German Chancellor, Olaf Scholz, in Berlin, the pair began talks on a new cooperation agreement between the two countries. According to Mr Starmer, the agreement aims to boost trade, create jobs and deliver economic growth in both countries. The two leaders hope to sign a treaty by early 2025, covering areas such as economy, defence, trade, energy security, science and technology. However, they gave few details of what the agreement would look like, and it remains to be seen what the signed, substantive agreement will look like. Starmer then travelled from Berlin, Germany to France as he undertook two days of meetings as part of his continued strategy to build bridges with European leaders following Brexit.
The official visit of the UK Prime Minister to Germany was also the occasion to tackle the current Trade and Cooperation Agreement (TCA) with the EU. As for what Starmer would like to achieve in the area of commerce and trade, the publicly stated ambitions are so far limited to:
- a veterinary agreement to reduce barriers to trade in food products (which causes significant issues for the imports of fresh food to the UK),
- the removal of barriers for musicians and other artists to tour, and
- mutual recognition of professional qualifications.
During the visit, the two countries also agreed on a joint action plan to tackle illegal migration and smuggling rings by sharing intelligence and data.
Both Macron and Starmer also agreed to deepen bilateral relations, particularly in the areas of defence, security and energy, without giving any further details at this stage.
Starmer has previously said he will seek a better trade deal with the EU than the one negotiated by the previous UK government at the end of 2020, which is to be reviewed in 2025-26. However, any substantive improvement in the economic relationship between the EU and the UK will have to be negotiated with the European Commission and reopen a series of questions on the type of relationship both parties wants to achieve. Efforts to improve trade between Germany and the UK could also risk infringing EU rules.
While Mr Starmer said he was “absolutely clear” the government wants to reset relations with the EU, he also added that this does not mean reversing Brexit or re-entering the Single Market or the Customs Union. However, it does mean a closer relationship on a number of fronts. Companies operating in both Germany or France (and in the long run the EU) and the UK may seek to benefit if there is an easing of “unnecessary” trade barriers between the regions due to the proposed treaty. Companies should therefore monitor the development and any specific agreements being signed in areas of interest.
