New Delhi, May 19 -- Britain and the European Union agreed on Monday to a sweeping new reset of their defence and trade relationship, marking the most significant cooperation since the UK officially left the bloc in 2020. Prime Minister Keir Starmer hosted European Commission President Ursula von der Leyen and European Council President Antonio Costa in London for the first formal UK-EU summit since Brexit.

"This deal is a win-win," said Starmer. "Britain is back on the world stage."

At the heart of the agreement is a new UK-EU defence and security pact. The deal grants the UK access to a €150 billion ($167 billion) EU loan programme for military procurement-aimed in part at supporting Ukraine.

British defence companies such as B...