The UK-EU summit on 19 May 2025 brings positive momentum for European-British relations and consequently, for bilateral relations. In the face of numerous geopolitical challenges, the demonstrated political unity is a strong signal for Europe and beyond. However, in economic terms, a lot remains relatively vague. Therefore, in many areas the outcome of summit only represents a roadmap for further negotiations.
Our regular surveys show that over 80% of the companies in our community consider closer ties between the UK and the EU to be the utmost priority. The planned conclusion of a phytosanitary agreement, for instance, is thus an important first step towards stronger regulatory cooperation. An alignment of carbon border adjustment mechanisms (CBAM) was also agreed upon – although here, too, the devil will be in the detail.
In addition, the agreed cooperation in defence and security policy now allows for deeper collaboration in procurement, as the EU and the UK can be treated as a joint purchasing and production area. Alongside efficiency gains, this could lead to a wide range of further economic opportunities for both sides in the medium term.
Measures to promote the exchange of students and young professionals topped the EU’s priority list. However, in this area, only further talks were agreed upon. Unfortunately, the hoped-for simplifications for short-term employee deployments across the English Channel, sought by businesses on both sides, were not addressed.
Despite some difficult negotiations ahead, I remain optimistic about the future and the summit is undoubtedly of considerable symbolic significance to redraw EU-UK relations. The fundamental agreements indicate that the climate in the mutual relations has significantly improved and this now allows for economic details to be tackled constructively, enabling the benefits for both sides.
Dr Ulrich Hoppe
Director General
German-British Chamber of Industry & Commerce
