On 17 July 2025, Prime Minister Sir Keir Starmer hosted German Chancellor Friedrich Merz in London to sign a landmark treaty—the first formal agreement between the UK and Germany since the Second World War. While the treaty focused largely on defence and migration, it also laid the foundation for enhanced economic and technological cooperation.

One key section, titled Economic Growth, Resilience and Competitiveness, outlined joint commitments to boost job creation, support digital innovation, and pursue a sustainable industrial transformation. Both governments agreed to address shared vulnerabilities and align their policies to build a greener, more resilient economy.

The agreement placed a strong emphasis on green energy, with both nations pledging to capitalise on the renewable potential of the North Sea and invest in technologies that support the transition to net zero. Economic opportunity through environmental action was a clear shared priority.

Technology and research also featured heavily, with Starmer and Merz agreeing to structured collaboration on emerging and critical technologies, including artificial intelligence. Regular exchanges between both countries' scientific and innovation communities were promised, with a focus on ensuring the secure and responsible use of new technologies to tackle future global challenges.