BRITISH Prime Minister Keir Starmer and Spanish PM Pedro Sanchez are meeting in London today to sign the first major bilateral agreement between the two countries since Brexit.
The landmark memorandum of understanding – similar to deals Starmer has already struck with France and Germany – will pave the way for regular dialogue on shared challenges including climate change, migration, and economic cooperation.
The timing comes after June’s breakthrough agreement that finally resolved Gibraltar’s post-Brexit status and removed a thorn in the side of the two allies’ relations.
Both governments expect the legal framework to be completed by October, potentially allowing the Rock’s border fence to be removed early next year.
Gibraltar’s resolution has cleared the path for deeper UK-Spain cooperation, with both social democratic leaders keen to strengthen ties as Europe faces rising conservatism and far-right influence.
The economic relationship between the two NATO allies is critically important for both.
The UK is the largest market for Spanish companies outside the EU, while Britain remains Spain’s second-biggest source of foreign investment at almost 80 billion euros.
Spanish exports to the UK reached €23.8 billion last year, making Britain Spain’s fifth-largest export destination.
Meanwhile, over 20 million Britons visit Spain annually, representing the country’s largest market in its largest sector – one both governments are working to make more sustainable.
After their power lunch, Sanchez will schmooze with corporate heavyweights at a Downing Street roundtable featuring Spanish titans like Iberdrola, Telefonica, Santander and airport operator Aena rubbing shoulders with British juggernauts Barclays, AstraZeneca and BP.
The leaders see eye-to-eye on supporting Ukraine against Russian aggression and on post-Brexit EU-UK reconciliation efforts.
However, some policy differences remain. Starmer has taken a more cautious approach than Sanchez on Palestinian statehood recognition, though Britain has recently moved closer to Spain’s position amid the worsening humanitarian situation in Gaza.
Both leaders face domestic political pressure over immigration policy.
Starmer has strengthened his rhetoric to counter Nigel Farage’s anti-immigration messaging, while both prime ministers favour international cooperation over mass deportation policies advocated by far-right groups.
The agreement represents Starmer’s broader strategy to rebuild European relationships damaged by Brexit, with today’s meeting serving as a cornerstone of post-Brexit UK-EU cooperation.
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