The Potential Deal:
UK Access to EU Defence Fund: The primary driver for the UK is to gain access to the EU's €150 billion Security Action for Europe (SAFE) loan scheme. This fund supports the joint procurement of ammunition, air defences, and drones. UK defence firms like BAE Systems and Babcock were previously excluded from this fund. Fishing Rights Concessions: In return for access to the defence fund, the UK government is reportedly considering a multi-year deal on fishing quotas in UK waters for EU fishermen. Quota Freeze: The proposed concession involves freezing the quotas that EU fishermen can catch in UK waters at the current level, which is around 75% of pre-Brexit levels. This means any further reduction in these quotas, which some in the UK fishing industry had hoped for, would be off the table for the time being. Long-Term Access: The deal would reportedly grant the EU a long-term agreement on access to UK fishing waters, providing more stability for European fishing fleets. Rationale and Reactions:
Economic Considerations: The UK defence industry's exports are significantly more valuable (around £14.5 billion) than fish sales (£1.7 billion). This disparity in economic value is a key factor in the potential trade-off.
UK Government Perspective: The government aims to balance economic strategy with political sensitivities, framing these concessions as necessary for broader economic and security benefits. EU Perspective: For some in the EU, securing continued access to UK fishing waters is a priority. They see a link between progress on a security and defence agreement and fisheries. Fishing Industry Concerns: The UK fishing industry is reportedly very unhappy with these potential concessions, viewing it as a "craven capitulation" and a "betrayal of Brexit." They argue that the industry is being used as a "pawn" and "sold down the river." There's also frustration that a significant portion of the current quota is taken by foreign-owned vessels with British flags. Wider Context:
UK-EU Relations: This potential deal is part of a broader effort to reset the UK's relationship with the EU and ease trade barriers. Brexit Fisheries Agreement: The current post-Brexit deal allows EU vessels to fish in UK waters up to six miles from the shore, with this arrangement fixed for five years until June 2026, after which access is to be decided in annual negotiations.
Upcoming Summit: A UK-EU summit is planned for May 19, 2025, in London, where these discussions are expected to be formalized. In summary, the UK government is reportedly considering offering long-term stability on fishing quotas for EU vessels in exchange for access to the EU's significant defence funding, a move that has sparked considerable anger within the UK fishing industry but is seen by some as a pragmatic decision given the broader economic and security benefits.
