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EU-UK Common Understanding

The EU and UK have announced a Common Understanding which sets out the conclusions of talks held at the EU-UK Summit on 19 May 2025.

19 May 2025, 2 min read

What is the objective?

The Common Understanding marks a renewed commitment from both sides to: 

  1. Implement the Withdrawal Agreement and the Trade and Cooperation Agreement in a ‘full, faithful and timely’ manner. 
  2. Consolidate existing cooperation on fisheries and energy.  
  3. Strengthen relations in five broad areas – security, defence and development cooperation; people; the planet and its resources’ international security and judicial cooperation; and irregular migration.  

What has been announced on fisheries and energy?


On fisheries

Both sides have agreed to the full and reciprocal access to waters until 30 June 2038 to ensure stability and predictability for fishers on both sides of the Channel. This agreement will be formalised within a month. 

On energy

  • Both sides have agreed to extend the application of the TCA’s energy title on an annual basis. This was due to expire in June 2026. Instead, its extension will be formalised within a month.  
  • The energy title within the TCA provides for cooperation on energy, including setting rules to facilitate energy trading and raw materials, cooperation on network development through North Seas Energy Cooperation, and cooperation between transmission system operators and regulators.   


What has been announced on the five key areas of work?


On security, defence and development cooperation

  • A Security and Defence Partnership will facilitate regular high-level dialogue through six-monthly foreign and security policy dialogues, as well as strategic consultation in areas of joint interest. The Partnership also creates a new, dedicated annual security and defence dialogue and exchange on many areas, including peace mediation and crisis response.  
  • This also enables the UK to participate in common procurement actions under Security Action for Europe with Member States.  

On people

  • Both sides will work toward a youth experience scheme, which should facilitate the participation of young people from both jurisdictions to travel, work, volunteer and study in the other. It is envisaged the youth experience scheme will be age-limited, time-limited and subject to the fulfilment of certain conditions. This would be delivered through a dedicated visa path.  
  • Both sides will also work together towards the association of the UK to the Erasmus+ programme. More details will be shared once negotiations regarding specific terms are agreed.  

On strengthening our economies whilst protecting the planet and its resources

  • The EU and UK will explore the possibility of an agreement leading to the UK’s participation in the EU’s internal electricity market. The UK will be required to dynamically align to relevant EU rules. This exploratory work will now commence, and current electricity trading arrangements will continue to apply in the meantime.  
  • Both sides will work towards a Sanitary and Phytosanitary (SPS) agreement for GB so that the vast majority of movements of animals, animal products, plants and plant products between GB and the EU (and GB and NI) without SPS certificates and checks.  
  • Both sides will work towards linking their emission trading systems – this will mean carbon allowances issued by either side could be recognised for compliance by the other. This agreement would create conditions for mutual exemptions from their respective Carbon Border Adjustment Mechanisms. 
  • Within the framework of the TCA, both sides will hold a dedicated dialogue on business mobility. The dialogue will focus on the UK’s sponsorship scheme to EU service suppliers and on the recognition of professional qualifications. 

On internal security and judicial cooperation

  • Both sides agreed to quicker and better implementation of the TCA in relation to internal security and judicial cooperation.  

On irregular migration

  • Both sides agreed to deepen cooperation on the challenges posed by irregular migration.

What is the CBI’s reaction?

We released a press statement following the Summit in which we welcomed the government’s commitment to free and fair trade. The deal is a significant first step in the EU-UK reset, and firms across the country will benefit from stronger EU-UK cooperation. 

Looking ahead, both sides must work together to make the most of this opportunity. Business must play a critical role in helping to deliver the commitments outlined to help grow our trading relationship, unlock investment, and drive growth.  

CBI wins 

In our pre-Summit report, Building Bridges, the CBI called for: 

  1. Better enabling of short-term business travel 
  2. A Mutual Recognition of Professional Qualifications agreement 
  3. Reciprocal youth participation schemes 
  4. A bespoke SPS Agreement  
  5. Strengthened cooperation through the North Seas Energy Cooperation 
  6. Linking the UK and EU’s respective Emissions Trading Schemes, leading to mutual exemptions for both CBAMs 
  7. Joint defence initiatives on issues like cyber security and space 
  8. Regular strategic dialogues on defence and economic security issues 

All of these have either been announced or both sides have committed to exploring. 

To discuss the Common Understanding in more detail or share your thoughts, please contact Erin Henwood to share your views.