Despite this deal, EU is moving forward and UK risks being left behind

The Herald Scotland

19-05-2025

And the UK is not far behind.
Across the country, factory closures have devastated entire communities, particularly in vulnerable areas of Scotland and Wales, the former of which is currently reeling from the closing of Grangemouth oil refinery.
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New partnerships are needed but the Westminster has yet to face the facts. Donald Trump's return has added another spanner to the works. His tariff flip-flopping, enmity with China, and repeated accusations of European 'freeloading' serve as constant reminders that the familiar trans-Atlantic alliance is nearing a rock bottom.
And despite recent polls suggesting that almost 50% of British voters fear that Trump will worsen the UK economy and threaten national security, Prime Minister Starmer dove straight into negotiations - emerging last week with a trade deal so weak, famed American economist Joseph Stiglitz said 'it isn't worth the paper it's written on.'
But the UK is playing in both ways.
Starmer welcomed European leaders to a historic Brexit reset summit in London, aiming to strengthen relations after years of chaos. He is claiming triumph as the UK government and the EU have reached a new deal setting out post-Brexit relations on areas including fishing rights, trade and defence.
The deal, as far as it goes, is welcome and the foundation for a strong partnership with the EU is already there. After all, the UK imports over 50% of goods from Europe versus a meagre 10% from the US.
But the EU, with its strong vision, will not be bullied into entering a partnership, even peripheral, with the deregulation, fossil fuel extraction, chlorinated chicken, or any of the other host of things that a deal with Trump precludes. Nor should it.
After all, the EU doesn't need the US – especially not when budding economic regions are becoming strategically more aligned with Brussels on critical vectors like climate change, energy, AI and defence.
Just a few months ago, Dassault Aviation delivered the first batch of its superior Rafale fighter jets to the United Arab Emirates (UAE). The French defense company was contracted as part of a broader €17 billion security agreement between the two countries. Not only has Dassault made a profit, but the deal is also supporting an estimated 7,000 French jobs until at least 2031.
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Even Germany has tasted the potential. One of Europe's leading chemicals corporations is close to acquiring the Abu Dhabi National Oil Company (ADNOC) for almost €15 billion. Covestro, which specialises in innovative plastic materials and advanced recycling technologies, had once contributed roughly 5% of Germany's GDP before finding itself in the grip of Germany's fiscal crisis. However, with ADNOC's cash injection – which is part of a larger plan to inject 150bn in capital through 2027 - it has accelerated its ambitious growth strategy allowing it to invest in the sustainable solutions of tomorrow.
At the same time, the Covestro acquisition has supported ADNOC's strategic decision to diversify beyond oil and gas, futureproofing its business through the choppy waters of the global energy transition. And the firm is playing a key role in achieving its country's climate ambitions underscored by the UAE Consensus, which are far more similar to those of the EU than they are to Trump's 'drill, baby, drill'.
These developments should serve as a wake-up call for the UK. Like the EU, Britain must refine its priorities, reduce wasteful spending, and aggressively pursue investment in areas like green energy, defence tech, and AI. Only by doing so can it attract the foreign capital it sorely needs.
Sooner rather than later Starmer will face a choice: Will he cling to the crumbling mythology of a 'special relationship' with the US, or will he embrace a more dynamic, forward-facing partnership with Europe and the rest of the world?
Gilberto Morishaw is an expert on international governance, innovation and systems thinking, having previously served as a youth advisor to the European Commission for International Partnerships. Morishaw is also a Senior Fellow at Humanity in action, a TILN Fellow of the German Marshall Fund and a Global Shaper at the WEF. He is a co-founder of Merge Collective, which aims to bring policy into the web3 era, and the former Head of Impact at Kolektivo, which provides micro-grants to community builders on his home Island of Curaçao.