The UK–EU reset: Next steps after the May 2025 summit

On 19 May 2025, the UK Government and the EU held their first joint summit since the UK left the EU, adopting a Joint Statement (PDF) setting out a new UK-EU strategic partnership and a Common Understanding with commitments to work towards strengthened cooperation across a range of policy areas. Alongside the texts, the UK and the EU announced a UK-EU Security and Defence Partnership setting out a new political framework for cooperation in this area.

The summit followed the reset in UK-EU relations launched after the Labour government took office in July 2024.

New Strategic Partnership

The Joint Statement (PDF) outlines a new Strategic Partnership between the UK and EU, building on the foundations of the UK-EU Withdrawal Agreement and the Trade and Cooperation Agreement (TCA).

The Joint Statement sets out areas in which the EU and the UK have shared strategic interests. It establishes new structures for regular engagement between the EU and the UK at all levels: leaders, ministers and senior officials. It envisages that there will be an annual summit to oversee the implementation of UK-EU agreements between the EU and UK and to “drive progress” in the areas covered by the Common Understanding.

The Common Understanding

The Common Understanding is based on the outcome of exploratory talks between the European Commission and the UK, with commitments to strengthen cooperation to be further developed in future discussions.

Further negotiations may lead to new formal agreements in some areas. This may also require primary legislation for domestic implementation of the agreements in the UK once finalised. The EU will need to adopt negotiating mandates for new agreements, with the European Commission negotiating on behalf of the EU following authorisation by the Council of the EU (which comprises ministerial representatives of the member states).

The Council of the EU adopted a Decision authorising negotiations on a UK-EU youth experience agreement on 20 June 2025. This was followed by a Commission recommendation for a Council Decision to authorise negotiations on separate agreements on a common UK-EU Sanitary and Phytosanitary (SPS) area and on linking the UK-EU emissions trading systems, published on 16 July 2025.

Some areas of strengthened cooperation covered by the Common Understanding could be implemented ahead of, or without the need for, new formal agreements or under the existing TCA.

Continuing TCA fisheries and energy arrangements

The Common Understanding referred to political agreements that had already been reached by the UK and the EU on continuing existing cooperation arrangements on fisheries and energy under the TCA. Following the end of a transitional period in which 25% of the pre-Brexit EU quota for fisheries access to UK waters was transferred back to the UK, negotiations on access to waters were due to take place on an annual basis from 2026. However, the agreement between the UK and the EU extended existing levels of EU access to UK waters for a further 12 years until 30 June 2038.

EU member states reportedly insisted that continuation of the fisheries arrangements was essential for reaching agreement on the reset of UK-EU relations in other areas. This fisheries agreement was formalised by a decision of the TCA Specialised Committee on Fisheries (PDF) on 19 June 2025.

TCA provisions on energy cooperation were also due to expire on 30 June 2026, unless the EU and the UK agreed to renew them. The Common Understanding noted agreement to extend these provisions “on a continuous basis”. An initial extension until March 2027 was formalised by a decision of the UK-EU Partnership Council (the main joint UK-EU governance body of the TCA) on 19 June 2025 (PDF), with the Partnership Council resolving to continue to extend the energy cooperation provisions annually.

The Common Understanding states that the EU and the UK will also explore the possibility of UK participation in the EU’s internal electricity market.

Youth experience and Erasmus student exchange

The Common Understanding states that the EU and the UK will work towards a UK-EU youth experience scheme. The Labour government and its Conservative predecessor had rejected earlier European Commission proposals for a EU-UK youth mobility scheme. However, the Labour government has in recent months indicated a willingness to compromise on a youth mobility scheme if there were a cap on numbers.

The UK Government’s explainer on the UK-EU summit outcome stresses that the UK and the EU have agreed that any scheme will be time limited and that the overall number of participants must be acceptable to both sides. It also stresses the UK position that participants in the scheme should have no access to benefits or right to bring dependents.

The Common Understanding also states that the EU and the UK will “work towards” UK association with the EU’s Erasmus+ programme (offering education and training placements across the EU), with the financial terms to be agreed in a way that ensures “a fair balance as regards the contributions of and benefits to the UK”. The Conservative government had declined to participate in Erasmus+ in 2020, citing concerns over value for money.

Agreements on SPS and linking emissions trading

The Common Understanding states that the EU and the UK will work towards an SPS agreement so that “the vast majority of movements of animals, animal products, plants, and plant products between Great Britain and the EU” can be undertaken without certificates or controls.

The agreement would align SPS rules in Great Britain with those that apply in Northern Ireland under the Windsor Framework (part of the Withdrawal Agreement) and therefore reduce the need for checks between Great Britain and Northern Ireland made necessary by the framework.

An SPS agreement was a priority for the UK Government (and a Labour Party manifesto commitment) with the government highlighting the reductions in trade barriers and costs for UK exporters and the effects of the Windsor Framework. The EU had insisted that an SPS agreement would require “dynamic alignment”, meaning UK rules would have to align with and keep up with any changes to EU rules.

The EU and the UK also agreed to work towards an agreement linking the UK and EU emissions trading schemes (ETS). The TCA includes a commitment for the UK and the EU to consider linking their carbon pricing systems and the UK Government said in early 2025 that it was looking to take this forward.

The Common Understanding states that both an SPS agreement and an agreement on linking UK and EU ETS would be based on dynamic alignment with relevant EU rules and a financial contribution to EU costs in these areas. There would be UK involvement in EU decision shaping; for example, the European Commission would consult the UK when developing policy in these areas, but the UK would not be involved in EU decision making.

The agreements would also involve joint governance and dispute resolution mechanisms, with the European Commission recommendation on authorising EU negotiations indicating that they should come under the TCA governance structure. Unlike the TCA, the envisaged dispute resolution mechanism would involve a role for the Court of Justice of the EU in giving rulings on questions involving the interpretation of EU law during the arbitration process. A similar procedure applies under the earlier UK-EU Withdrawal Agreement.

The Common Understanding also indicates that similar features would apply to an agreement on UK participation in the EU’s electricity market.

Other cooperation arrangements

Other UK priorities in the reset included improved arrangements to address barriers for UK touring artists in the EU. The Common Understanding does not make specific commitments on touring provisions, but states that the UK and the EU will continue their efforts to support travel and cultural exchange.

The UK and the European Commission also committed to setting up dialogues on mutual recognition of professional qualifications and on business-related travel and stays. The UK had sought a strengthened framework for mutual recognition of professional qualifications, while the EU had expressed concerns about UK visa rules making business-related stays difficult.

The Common Understanding referred to smooth border management, confirming that UK citizens would be able to use eGates once the EU’s new automated Entry/Exit System comes into operation (scheduled for late 2025), though this would be dependent on member states facilitating this.

The UK and the European Commission also announced new arrangements to safeguard tariff-free trade in certain steel products.

Law enforcement cooperation and irregular migration

The Common Understanding states that the EU and the UK will aim to “reinforce cooperation” under the TCA in areas such as mutual legal assistance, extradition, exchange of information relating to terrorism and other serious international crime, the exchange of fingerprint data, DNA and other biometric data, the exchange of criminal records, and cooperation with Europol (the EU law enforcement agency).

The Common Understanding also envisages closer UK-EU cooperation to reduce irregular migration and people smuggling, including preventing irregular Channel crossings. This would include “work to share best practices and operational information on key issues like returns to third countries, and to explore possible deterrence mechanisms”.

The EU-UK Security and Defence Partnership

The Security and Defence Partnership is a non-legally binding political framework for cooperation, involving dialogue and consultation mechanisms and “flexible and scalable engagement” on areas of shared interest. Building on the six-monthly dialogue already agreed between the Foreign Secretary and EU High Representative, there will be further dialogue on defence and security initiatives, and the UK will be invited to attend EU high-level meetings as appropriate. The UK will also consider participation in EU security and defence policy operations, where invited by the EU, and further UK and EU military cooperation will be explored.

The Common Understanding also calls for cooperation under the EU’s Security Action for Europe (SAFE) defence financing initiative to be swiftly explored. The UK Government has said that UK access to SAFE will be a focus for further discussions.