UK-German Relations

Al Pinkerton Excerpts

Wednesday 25th February 2026 Westminster Hall

[Dr Al Pinkerton (Surrey Heath) (LD)]

It is a pleasure to serve under your chairmanship, Mr Twigg. I am grateful to the hon. Member for Preston (Sir Mark Hendrick) for securing this important and timely debate.

The Liberal Democrats believe that we are stronger, safer and more prosperous when we build serious, long-term partnerships with our European allies and colleagues. UK-German relations are a litmus test of our wider relationship with Europe. In an age of instability, we face an unpredictable US Administration, as we have already heard, and we have seen rising interference from the likes of China and continued Russian aggression. In that environment, defence and economic security become even more inseparable than they already were. That is why a closer and more pragmatic, productive and co-operative relationship with Germany is strategically imperative to us all.

Germany is Europe’s largest economy and one of the EU’s most influential states. Trade between the UK and Germany accounts for about 8.5% of UK trade, and supports nearly half a million jobs. I am lucky to have the UK headquarters of multiple offshoots of German companies in my Surrey Heath constituency, such as Stihl, the German manufacturer of chainsaws. My wife’s job is one of those nearly half a million jobs that I mentioned, working as she does for BMW in the neighbouring constituency of North East Hampshire. That is not intended to be a declaration of interest—it is merely a statement of fact—but I am very grateful to BMW for the electric Mini, which I am lucky enough to occasionally be allowed to drive.

The Kensington treaty, signed in July 2025, established a comprehensive framework for UK-German co-operation across defence, trade, climate, education and science, and that is undoubtedly the right direction of travel. However, a treaty is only as meaningful as its delivery.

Let me first turn to defence. At the Munich security conference, the Prime Minister called for deeper economic and security co-operation between the UK and the EU, and for a stronger expression of European hard power. At a time of heightened geopolitical tension, nobody can doubt that strengthening co-operation with Europe is firmly in Britain’s national interest. Securing full participation in the EU’s Security Action for Europe fund would undoubtedly support UK defence manufacturers and strengthen collective rearmament. Our partnership with Germany should support Ukraine’s recovery and deepen collaboration through the Trinity House agreement, with joint exercises, industrial co-ordination and capability development. If Britain wants influence over Europe’s defence architecture, it must be present where capability priorities are shaped.

On the economy, in 2015 the UK was Germany’s fifth largest trading partner, but by 2022 we had sadly fallen to 11th, reflecting the growing trade frictions between our two economies. In 2025, the Financial Times reported that German car manufacturer BMW had paused its £600 million investment in electric vehicles in Oxford. When advanced manufacturing decisions are finely balanced, as they so often are, added trade friction and regulatory divergence make the United Kingdom a less certain destination for investment.

The British Chamber of Commerce in Germany echoed those sentiments by warning that post-Brexit paperwork and border delays are pushing UK firms away from their largest export markets, with some customers turning to EU-based suppliers instead. If we are serious about restoring competitiveness, we must build trust and reduce those trade barriers. A bespoke EU-UK customs union might just stand a chance of easing some of those rules of origin burdens, lowering border costs and providing manufacturers with the certainty that they need.

Finally on cultural exchange—a topic that has frequently been raised in this debate—the Kensington treaty recognises that relationships are built not only by Governments but by young people and communities. The right hon. Member for Oxford East (Anneliese Dodds) mentioned town twinning. Not wanting to be left out of the excitement, I am very pleased to say that my Surrey Heath constituency is twinned with Bietigheim-Bissingen in Germany, and that our main popular shopping street is named Bietigheim Way, in reference to the historical connections between our two parts of the world. A UK-Germany youth summit and cross-border volunteering partnerships are absolutely critical, but so many of these programmes are vital for building long-term trust between our communities.

Three quarters of 18 to 24-year-olds voted to remain in the European Union in 2016, yet they are bearing many of the mobility costs that Brexit has imposed. They lost the freedom to study and work easily across Europe, including by participating in Erasmus, so we fundamentally welcome the UK rejoining the Erasmus scheme as a step towards rebuilding educational co-operation with Germany and across the rest of the EU. We are also calling for negotiations on a reciprocal EU youth mobility scheme with an age limit of 35, no visa fees and visas extended to three years to further and deepen that co-operation.

I again thank the hon. Member for Preston and other hon. Members for invoking the spirit of the UK-German relationship so effectively. We fundamentally believe that a closer relationship with Germany will strengthen our defence, support our economy and deepen cultural exchange.