Opening the first EU–UK summit since Brexit, prime minister Keir Starmer described the agreement as "a new era in our relationship" and "a new strategic partnership fit for our times."
President of the European Commission, Ursula von der Leyen, Keir Starmer, and president of the European Council, Antonio Costa arrive to attend the UK-EU Summit at Lancaster House on May 19, 2025 in London. (Photo: Getty Images)
THE UK and the European Union on Monday reached a landmark agreement to strengthen cooperation on defence and trade, signalling a new chapter in relations following the UK's departure from the bloc in January 2020.
Opening the first EU–UK summit since Brexit, prime minister Keir Starmer described the agreement as "a new era in our relationship" and "a new strategic partnership fit for our times."
At a joint press conference with European Commission President Ursula von der Leyen and European Council President Antonio Costa, Starmer called the deal a "win-win" and said it was "good for both sides."
Following months of negotiations, the two parties agreed to hold more regular security discussions as part of a new defence arrangement.
The UK and the EU have agreed to a new security and defence partnership. This comes at a time when European countries are increasing their military readiness in response to threats from Russia and concerns over the policies of US President Donald Trump.
Under the agreement, British representatives will be allowed to attend certain EU ministerial meetings and take part in European military missions and exercises.
The partnership also aims to integrate the UK’s defence industry more closely with European efforts to build a domestic industrial base.
It opens the possibility for British firms to access a 150-billion-euro EU fund, which is currently under negotiation among the 27 EU member states. A separate agreement and financial contribution from the UK will be required to enable this.
Companies such as BAE Systems and Rolls-Royce are expected to benefit from this arrangement.
Burgers and pets
The agreement includes a commitment to reduce checks on food and plant products in future trade, which had been a key demand from London.
"This would result in the vast majority of movements of animals, animal products, plants, and plant products between Great Britain and the European Union being undertaken without the certificates or controls that are currently required by the rules," the agreement text states.
The EU remains the UK's largest trading partner. However, UK exports to the EU have fallen by 21 per cent since Brexit, and imports are down seven per cent.
Prime minister Starmer said that British products such as burgers, sausages, shellfish and others will now be able to return to EU markets. He also said that Britons will find it easier to travel with their pets.
The UK has agreed to a form of dynamic alignment with EU sanitary and phytosanitary rules, with the ability to adjust over time. Some exceptions may apply.
A new independent dispute resolution mechanism will be created, but the European Court of Justice will remain the final authority.
Other economic aspects of the agreement include closer cooperation on emissions quotas. This will allow UK businesses to avoid paying the EU’s carbon border tax.
According to Downing Street, these measures could add "nearly £9 billion (10.7 billion euros) to the British economy by 2040".
Fisheries
The fisheries section of the agreement was of particular concern to France and was considered essential for broader UK–EU cooperation.
The UK has agreed to extend an existing arrangement allowing European vessels to fish in British waters and vice versa until June 2038. The current deal was due to end in 2026.
Downing Street said this extension would provide stability for fishing crews while maintaining current catch levels for EU vessels in British waters.
The deal drew criticism in Scotland. Scottish First Minister John Swinney said the fishing sector "seems to have been abandoned" by London. The Scottish Fishermen’s Federation described the agreement as a "horror film".
French fisheries minister Agnès Pannier-Runacher welcomed the deal, saying it "will provide economic and political visibility for French fishing".
Youth mobility
The EU has pushed for a youth mobility scheme to allow young people to study and work temporarily across borders. The UK has not made a firm commitment on this and remains cautious of any move resembling free movement.
The agreement text does not mention "mobility" but expresses a shared interest in developing a "balanced programme" to let young people work, study, volunteer or travel across the UK and EU under future conditions.
Discussions also included the possibility of the UK rejoining the Erasmus+ student exchange programme.
The number of EU students studying in the UK has fallen from 148,000 in 2019–2020 to 75,500 in 2023–2024.
Border crossings
To make travel smoother, both sides agreed to "continue discussions" to allow UK nationals more access to "eGates" at EU borders.
Downing Street said this would help British holidaymakers avoid long queues at European airports.
FILE PHOTO: Passengers board a Pakistan International Airlines (PIA) flight at the airport in Kabul on September 13, 2021. (Photo by AAMIR QURESHI/AFP via Getty Images)
TWO of Pakistan's leading business groups and a company backed by the powerful military will bid for the country's ailing national carrier, a divestment the government hopes will kickstart the privatisations of state-owned enterprises.
The sale of Pakistan International Airlines will be the first major privatisation for around two decades, with the sale of loss-making state-owned enterprises a condition of last year's $7 billion (£5.5bn) bailout by the International Monetary Fund.
The government tried unsuccessfully to last year offload a stake in PIA, which is a major burden on its budget, but the sale was aborted because of the poor state of the airline and the conditions attached to any purchase.
Expressions of interest are due by Thursday (19) for an up to 100 per cent stake in the airline, with industry insiders expecting more bidders to emerge. They say the deal has been sweetened with a tax incentive and bolstered by signs of a turnaround in PIA's fortunes.
The Ministry of Privatisation did not respond to a request for comment.
Among those planning bids are the Yunus Brothers Group, owners of the Lucky Cement and energy companies; and a consortium led by Arif Habib Limited that includes Fatima Fertiliser, Lake City, and The City School, sources within the companies said.
Fauji Fertilizer Company, which is part-owned by the military, said it will be making an expression of interest, in a notice to the Pakistan Stock Exchange. Fertiliser production is a lucrative sector in Pakistan.
A group of PIA employees has also come forward to bid.
"The employees will use their provident fund and pension, in addition to finding an investor to place a bid. We're doing this to save jobs and turn around the company," said Hidayatullah Khan, president of the airline's Senior Staff Association.
The airline was restructured last year, offloading approximately 80 per cent of its legacy debt to the government to make it more attractive to investors. But bidders remain concerned about overstaffing and the ability to fire employees.
Last year's sale effort failed when the sole bid of $36 million (£28m) fell far short of a $305m (£240m) floor price.
Interested parties walked away before bidding, partly because the government was not willing to give up 100 per cent of the company, with bidders saying they did not want the government to remain involved.
Since then, PIA has posted its first operating profit in 21 years, driven by cost-cutting reforms, after making cumulative losses of $2.5bn (£2bn).
This success of the current process will depend on whether the government is willing to give up a 100 per cent stake, industry insiders said.
They added that a government decision this month to remove the requirement of paying sales tax upfront on the lease of new aircraft, which had been an impediment, will make the deal more attractive.
PIA resumed flights to Europe in January after the European Union lifted a four-year safety ban. The airline has also approached UK authorities for permission to resume services to London and Manchester.
The restoration of international routes is vital to future growth opportunities and successful bidders are likely to bring in foreign airlines as operators.
By clicking the 'Subscribe’, you agree to receive our newsletter, marketing communications and industry
partners/sponsors sharing promotional product information via email and print communication from Garavi Gujarat
Publications Ltd and subsidiaries. You have the right to withdraw your consent at any time by clicking the
unsubscribe link in our emails. We will use your email address to personalize our communications and send you
relevant offers. Your data will be stored up to 30 days after unsubscribing.
Contact us at data@amg.biz to see how we manage and store your data.
Choksi, accused in a bank fraud case in India, has been arrested in Belgium and plans to appeal for release, citing medical grounds. (Photo: Getty Images)
FUGITIVE jeweller Mehul Choksi accused India of orchestrating his kidnapping to extradite him on fraud allegations, with his lawyers telling London's High Court on Monday (16) that only India had the motivation and resources to do so.
Choksi – who was arrested in Belgium in April – is wanted in India over his alleged involvement in one of India's biggest bank frauds at Punjab National Bank, which in 2018 announced it had discovered alleged fraud worth $1.8 billion (£1.29bn).
Choksi is separately suing the Indian government in London, arguing that the state was responsible for his kidnapping in Antigua in 2021, when he says he was abducted and taken to Dominica in an attempt to extradite him to India.
India's lawyer Harish Salve said in court filings that "there is no evidence of India having anything to do with the alleged events".
Choksi alleges he was beaten in a failed attempt to extort a false confession and implicate India's political opposition, which he says points to state involvement in the incident.
Choksi's lawyer Edward Fitzgerald told the court: "The evidence points inevitably to India being behind this – they had the motivation, they had the resources."
Monday's hearing, the first since Choksi filed his case last year, was held to decide when India's application to throw out Choksi's lawsuit on state immunity should be held.
(Reuters)
Keep ReadingShow less
The Consumer Prices Index (CPI) stood at 2.6 per cent in March, down from 2.8 per cent in February, the Office for National Statistics (ONS) said. (Representational image: iStock)
UK INFLATION eased slightly in May but remained above expectations, according to official figures released on Wednesday, adding to speculation that the Bank of England will keep interest rates unchanged this week.
The Consumer Prices Index fell to 3.4 per cent in May from 3.5 per cent in April, which had marked a 15-month high, the Office for National Statistics (ONS) said.
Analysts had expected a bigger drop to 3.3 per cent.
The release came after separate data last week showed that the UK economy contracted more than expected in April.
Gross domestic product fell by 0.3 per cent, driven by a tax increase on UK businesses and a sharp decline in exports to the United States linked to president Donald Trump's tariffs.
Political responses
Chancellor Rachel Reeves said, "Our number one mission is to put more money in the pockets of working people."
Mel Stride, the finance spokesperson for the opposition Conservatives, said inflation staying "well above" the Bank of England's 2 per cent target "is deeply worrying for families".
The Bank of England is expected to leave its key interest rate unchanged at 4.25 per cent when it announces its decision on Thursday.
Mixed price movements
"A variety of counteracting price movements meant inflation was little changed in May," said Richard Heys, acting chief economist at the ONS.
"Air fares fell this month, compared with a large rise at the same time last year," he said. However, higher prices for chocolate and meat helped to offset the fall in motor fuel costs.
Danni Hewson, head of financial analysis at AJ Bell, said, "The escalating conflict between Israel and Iran has impacted the oil price in the past week, with UK motorists already bracing themselves for hikes and airfares also expected to soar."
Interest rate outlook
The Bank of England cut interest rates last month by a quarter point, its fourth reduction in nine months, as tariffs continued to weigh on economic growth.
Analysts expect the central bank to maintain that pace of easing until at least early next year.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said, "The fact that inflation has fallen back slightly... should bring some comfort to the Bank of England as it considers the next move for interest rates."
"They were expecting inflation to remain well above target at this point in the year, so it won't necessarily spark a rethink on rates.
"Before the announcement, the markets were expecting two more cuts by the end of the year, and there's a reasonable chance this won't move significantly on the back of today's news," she added.
A NEW study revealed that India has become the top source of foreign-born founders behind America’s most valuable start-ups, highlighting the country's growing influence in the global technology sector.
Research by Stanford University’s Venture Capital Initiative showed that Indian entrepreneurs have founded 90 "unicorn" companies - start-ups valued at over $1 billion - in the US.
According to the report, Indian Institutes of Technology (IITs) dominate the rankings, with IIT Delhi leading the pack by producing 16 unicorn founders, including Jyoti Bansal who created AppDynamics. IIT Bombay follows closely with 14 founders, while IIT Kanpur has contributed 12, including the team behind cloud computing giant Nutanix.
Among the 165 US unicorn founders who studied at Indian universities, 81 per cent pursued either computer science or engineering degrees, the report noted.
“Indian entrepreneurs have become essential to the US’s innovation economy. India has contributed 141 unicorn founders who received their undergraduate education from Indian universities, again leading all countries outside the US. Most impressively, startups founded by Indian entrepreneurs who relocate to the US are 6.5 times more likely to achieve unicorn status than the average,” author of the report, Ilya A. Strebulaev, told Eastern Eye.
This pattern of immigrant entrepreneurship isn't unique to the US. In Britain, foreign-born founders play an equally vital role in the start-up ecosystem, according to data from Financial Times-backed tracker Sifted.
Despite foreign-born residents making up less than 15 per cent of the UK's population, they account for 39 per cent of the country's 100 fastest-growing companies. The USwas the most common country of birth for foreign-born founders in the UK, followed by Italy, France, Canada, India and Germany.
Asian entrepreneurs have been particularly successful, founding major unicorns including Oxford Nanopore Technologies and Hopin. Data shows that 24 per cent of Britain's unicorn companies now have foreign-born founders, with entrepreneurs coming from 28 different countries across five continents.
According to the Stanford report, California's unicorn companies employ approximately six per cent of their workforce in India on average, making the country the largest international talent pool for these billion-dollar firms. This creates valuable professional networks that often serve as launching pads for future entrepreneurs, as employees gain industry experience before starting their own ventures.
“India's technical education system has created a "national asset" in the global knowledge economy. The success of Indian entrepreneurs in the US also strengthens India's own start-up ecosystem through knowledge transfer, investment flows, and mentorship connections. As technology continues to drive worldwide economic growth, India's position as a primary source of high-impact entrepreneurs looks set to become even more significant in the years ahead,”
Strebulaev, who is the David S. Lobel professor of private equity at Stanford Graduate School of Business, pointed out.
Immigrant entrepreneurs are not just contributing to the US’s innovation boom - they are driving it, the report said. It analysed 1,078 founders behind 500 US unicorns and found that 474 founders came from abroad, representing 65 different countries across six continents.
Beyond individual founders relocating, entire companies are moving to the US to access its unique scaling advantages. The research showed that eight per cent of US unicorns - 88 out of 1,108 companies - were initially founded elsewhere before relocating to US soil. The benefits of this move are dramatic: Israeli start-ups that relocated to the US were nine times more likely to achieve unicorn status than those that remained at home, while Indian companies saw a 6.5-fold improvement in their chances.
“Successful examples of this trend include messaging platform Slack from Canada, gaming engine Unity from Denmark, and meditation app Headspace from Britain. These companies discovered that whilst great ideas can emerge anywhere, the American ecosystem offers unparalleled resources for growth,” the report said.
“Location choices within America also matter significantly. While California remains the top destination, international founders are increasingly strategic about where they establish operations. Israeli entrepreneurs often favour New York over California, and 15 per cent of all US unicorns have moved their headquarters at least once between founding and reaching billion-dollar valuations.”
Analysis of 191 California-based unicorns revealed that only 38 per cent of their 375,000 employees actually work in California. Nearly a third are employed elsewhere in the US, while another third work overseas, creating a truly international workforce.
When measuring entrepreneurial productivity per capita, Israel leads dramatically with 43.4 unicorn founders per 100,000 first-generation immigrants, followed by New Zealand at 37.3 and Belgium at 24.4. By comparison, India produces 2.5 unicorn founders per 100,000 immigrants, though it still contributes the highest absolute number.
The innovation ecosystem in the US thrives precisely because of this global talent mix, the research noted. With nearly equal numbers of US-born and immigrant founders, researchers describe this as "powerful complementarity".
Meta has announced the appointment of Arun Srinivas as the new Managing Director and Head of its India operations. He will assume the role from 1 July 2025, reporting to Sandhya Devanathan, who was recently promoted to oversee Meta's operations in both India and South East Asia.
Expanded role for Srinivas
In his new position, Srinivas will be responsible for aligning Meta’s business, innovation, and revenue priorities to better serve partners and clients across India. His focus will include strengthening strategic relationships with advertisers, developers, and brands, as well as continuing to support Meta’s long-term growth in the region.
Srinivas will lead efforts to drive the company’s India charter and will play a key role in supporting initiatives around Reels, AI, and messaging services, which are key strategic priorities for the tech giant in the country.
Background and previous experience
Srinivas is currently the Director and Head of Ads Business for Meta in India, a position he has held since joining the company in 2020. In that role, he has worked with many of India’s top advertisers and agency partners, contributing to Meta’s growth in the region.
An alumnus of IIM Kolkata, Srinivas brings nearly 30 years of experience in sales and marketing. He has held senior roles at Hindustan Unilever, Reebok, OLA, and investment firm WestBridge Capital.
Leadership comments
Commenting on the appointment, Sandhya Devanathan, Vice President for India and South East Asia, said: “Arun’s track record in building high-performing teams and fostering strong partnerships makes him the ideal leader to drive Meta’s continued investment in India.”
Meta considers India a key growth market and continues to focus on expanding its presence through innovations in AI, Reels, and WhatsApp.