UK defence firms have been given a boost after Emmanuel Macron dropped demands for a post-Brexit defence and security deal to be linked to fishing rights.
The French president has been told by some EU leaders to treat the issues separately because of the war in Ukraine.
It would mean UK companies being able to bid for contracts under the EU’s €150billion defence fund, unveiled last month.
One EU source said: ‘Even Emmanuel Macron isn’t stupid enough to let fish get in the way.’
The fund allows EU countries to borrow cash to invest more in defence and is aimed at enabling countries to re-arm quicker.
At present, British arms manufacturers are locked out until a deal has been struck, potentially delaying a joint UK-EU military response to the invasion of Ukraine.
Hopes are now growing that a deal can be thrashed out with Brussels in time for a summit in London next month.
However, the leaders of Italy and Spain still need to be won over.
French president Emmanuel Macron dropped demands for a post-Brexit defence and security deal to be linked to fishing rights
French Fishermen blockaded the entrance to the Port of Calais in a protest designed to increase pressure on the UK Government to grant licenses to European boats for licenses to fish within British waters (pictured in 2021)
Major EU fishing nations had been hoping to use the situation as leverage in post-Brexit ‘reset’ talks to get a better deal on catching rights for EU trawlers in UK waters.
By 2026 Britain will have seized back 25 per cent of catching rights in its waters that were surrendered before the 2016 Brexit vote.
France and Spain had wanted the status quo to be extended beyond 2026.