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Date Published: 20/05/2025

New UK-EU post-Brexit deal on defence and fisheries leaves Gibraltar status unresolved

Starmer has reached an agreement with Europe on some trade and defence issues, but for people in Spain and Gibraltar there is one glaring oversight

The United Kingdom and the European Union have ushered in a new phase of cooperation with a landmark agreement focusing on long-term access to British waters for European fishermen and enhanced collaboration in defence and security. The pact, announced in London on Monday during a high-level summit, signals a significant shift in bilateral relations nine years after the Brexit referendum and five years after the UK ‘got Brexit done’. However, it notably omits any progress on Gibraltar, which remains without a formal post-Brexit framework.

British Prime Minister Keir Starmer hosted European Commission President Ursula von der Leyen and European Council President António Costa at Lancaster House, where the three leaders described the meeting as the start of a “new chapter” in EU-UK ties.

“This is a historic moment,” said von der Leyen. “We’re turning a page. We’re opening a new chapter in our relationship.”

Starmer echoed the sentiment, describing the deal as comprehensive, balanced and reciprocal, insisting it would create jobs, lower household bills and safeguard the UK’s borders.

Specifically, the two sides have agreed to a ‘Strategic Security and Defence Partnership’, formalising recent cooperation on geopolitical challenges, particularly the war in Ukraine. The agreement opens the door for future British participation in the EU’s €150 billion European Defence Fund – dubbed Security Action for Europe (SAFE) – aimed at reinforcing European defence capabilities and reducing dependency on the United States.

Another critical pillar of the agreement is access to fisheries. From June 2026, when the current arrangements expire, reciprocal access to fishing waters will be guaranteed until 2038. Brussels has welcomed the deal as a win for stability in a sector that has been one of the most politically sensitive areas of post-Brexit negotiations.

Despite its relatively small economic contribution – just 0.03% of the UK’s GDP – fishing has held symbolic importance. The agreement has already attracted criticism from British fishing groups and politicians. Reform UK leader Nigel Farage condemned it as a “betrayal” of UK fishermen. In response, Starmer has promised additional financial support for coastal communities.

Progress has also been made on easing post-Brexit trade friction, with a new veterinary and phytosanitary agreement set to streamline food imports and exports. This includes improved arrangements for the movement of goods between Great Britain and Northern Ireland, a longstanding source of political tension.

On the issue of youth mobility, both parties have agreed on principles to facilitate the movement of young people for study, work or volunteering. Although specifics remain under negotiation, expectations are high that a visa-based system could be implemented within weeks. Von der Leyen also suggested the UK’s return to the Erasmus university exchange scheme may be on the horizon.

Further cooperation has been outlined in areas including energy, justice, emissions trading and migration policy, with a road map agreed for future alignment.

Between The Rock and a hard place

One notable absence from the agreement is Gibraltar, which remains without a formal arrangement since the UK’s withdrawal from the EU. Negotiations over the status of the British Overseas Territory have yet to bear fruit, and its exclusion highlights the limits of Monday’s rapprochement.

The major stumbling block to reaching a deal on Gibraltar is control of the land border shared by the UK overseas territory and mainland Spain. An estimated 15,000 people cross the Gibraltar-Spain border each day for work and leisure, and a closed border would significantly affect the free flow of labour, trade and travellers, impacting the local economy on both sides of the border.

The agreement marks a pivot in UK-EU relations since the Labour Party took power. Starmer’s administration has emphasised pragmatism and repair over the confrontation that characterised earlier post-Brexit dealings.

European sources noted that both sides’ “red lines” were respected, with the UK maintaining its stance against rejoining the Single Market or Customs Union. Instead, the focus has shifted to practical collaboration.

“It’s time to look ahead,” said Starmer. “To move away from the old, stagnant debates and political squabbles and look for practical, common-sense solutions that work for the British people.”

While much remains to be worked out, particularly regarding implementation and the finer details of youth exchanges and defence fund access, Monday’s summit marks a clear step towards a more constructive and stabilised relationship between the UK and the EU.

Image 1: European Commission

Image 2: Archive

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