Context:

UK Prime Minister Keir Starmer and German Chancellor Friedrich Merz are set to sign a significant cooperation treaty focusing on migration, defence, and economic collaboration. This treaty, which follows the recent visit of French President Macron, aims to tighten German laws against smuggling gangs facilitating illegal migration to the UK and establish a mutual defence agreement in response to Russia's invasion of Ukraine. The agreement will also create a UK-Germany Business Forum to encourage investment and economic growth, seen as essential due to the gaps left by Brexit. The discussions will include the war in Ukraine, boosting UK defence exports, and enhancing European cooperation amidst uncertainties with the US. German arms manufacturers accompany Merz, emphasizing the importance of defence collaboration in the treaty, which is more a statement of intent with concrete steps to be detailed later in an action plan.

Dive Deeper:

• German Chancellor Friedrich Merz will meet UK Prime Minister Keir Starmer at Downing Street to sign a treaty focused on migration, business, and defence. This treaty comes shortly after French President Macron's visit, and aims to enhance cooperation between the UK and Germany, particularly in tackling illegal immigration and defence matters.

• The treaty includes a significant component on defence, with both countries pledging mutual aid in case of an attack, reflecting concerns over Russia's actions in Ukraine. This aspect is crucial for Germany as it seeks to strengthen its defence ties amidst the European security landscape.

• Germany plans to tighten its laws by the end of the year to crack down on gangs smuggling migrants to the UK. This legislative change, initiated under former Chancellor Olaf Scholz, aims to facilitate German authorities in combating illegal migration and smuggling operations.

• The cooperation treaty will establish a new UK-Germany Business Forum to boost economic ties and fill the gaps left by the UK's exit from the European Union. This initiative is part of a broader effort to deepen economic collaboration and mutual investments between the two nations.

• The treaty is viewed as a statement of intent, with detailed action steps to follow in an outlined plan. It aims to bring the UK and Germany closer by addressing shared challenges and enhancing political, economic, and defence cooperation.

• German technology company STARK will open a new factory in Swindon, Wiltshire, creating over 100 skilled jobs and representing a £200 million investment in the UK. This move is part of a series of commercial investments announced during Merz's visit.

• Amidst uncertainties in the transatlantic relationship with the US, Germany sees European cooperation as increasingly urgent. Existing 'friendship treaties' with Poland and France have resulted in deeper cooperation, and a similar outcome is anticipated with the UK.