Britain and Germany ratify the Kensington Treaty, agreeing new cooperation on AI, quantum research, defence and security while targeting investment, jobs and Russian hybrid threats…reports Asian Lite News Desk
Britain and Germany have formally ratified the Kensington Treaty and agreed to deepen cooperation on defence, artificial intelligence, quantum technology and security, as Prime Minister Andy Burnham and Chancellor Friedrich Merz sought to strengthen European resilience and economic growth.
The agreements were reached during talks in Berlin on Thursday, 8 October, and include a new Industrial Tech Corridor to connect technology companies with major industrial partners, increased funding for joint quantum research and a partnership to counter cyber-attacks, sabotage and other hostile activity.
The Kensington Treaty, signed in London in July 2025, provides a framework for closer cooperation across science, technology, defence, security and the economy. Its ratification was completed through an official exchange of documents during the leaders’ meeting.
The two countries also agreed to maintain pressure on Russia over the winter and reaffirmed their support for Ukraine.
New technology corridor
The Industrial Tech Corridor will initially focus on artificial intelligence and high-value industrial applications, connecting British and German technology scale-ups with major companies and investors to help develop commercial uses for emerging technologies.
Companies including Allianz, Bosch, RWE and Siemens are backing the initiative. A dedicated roundtable involving business leaders and senior officials is planned for later this autumn.
Several firms have already outlined expansion plans. Munich-based robotics research company MicroAGI will expand its presence in London, creating 180 jobs. Energy company Proxima Fusion plans to expand its base at Culham, with the potential to quadruple its workforce at the site by 2028.
British AI software company Quantexa has also committed to establishing a dedicated unit in Germany to support the technology’s deployment in both countries.
The UK and Germany will increase joint funding for quantum technology research to €19.5 million. The additional grants will support five more research projects, bringing the total number of funded projects to 10.
Partnership to counter Russian threats
The leaders agreed to deepen cooperation against hybrid threats, including cyber-attacks, sabotage, disinformation and attempts to disrupt critical infrastructure.
The announcement followed an attempted Russian drone attack at Leipzig airport. Burnham expressed solidarity with Germany and called for a coordinated European response to hostile activity.
“Britain and Germany are joining forces to find, expose and disrupt this activity,” the Prime Minister said, warning that attacks on infrastructure, businesses and democratic institutions were intended to weaken and divide society.
The partnership will strengthen information sharing, contingency planning and crisis response. The leaders also agreed to work together against malicious misinformation threatening Europe’s democracies.
Burnham and Merz discussed possible German participation in the Global Combat Air Programme, the sixth-generation stealth fighter project involving the UK, Italy and Japan. Officials will continue discussions, but no decision on German participation was announced.
The countries also intend to deepen cooperation in space, including launch capabilities and assured access to space.
The leaders also discussed closer UK-EU cooperation, industrial competitiveness and supply-chain resilience. A Regional Growth Forum brought together business leaders to explore investment and regional development, with a deeper dialogue involving local and regional stakeholders planned for 2027.
£1bn German Deal for 4,000 Affordable Homes
German investment firm PATRIZIA has announced plans to invest £1 billion in affordable housing across the UK, with the potential to deliver up to 4,000 professionally managed homes through partnerships with mayors and local authorities.
Prime Minister welcomed the investment during his visit to Berlin, where PATRIZIA confirmed the funding commitment to its new UK Essential Living Platform.
The investment will support housing development in areas where demand is greatest, working directly with metro mayors and local partners. It builds on around £4 billion that PATRIZIA has already invested in the UK.
Asoka Wöhrmann, chief executive of PATRIZIA, said the UK’s need for affordable housing also represented a significant investment opportunity.
“Neither public nor private capital can solve this challenge alone, but together we can accelerate delivery and create lasting value for communities across the UK,” he said.
Wöhrmann said the company saw considerable potential to expand its housing investment by channelling long-term institutional funding into areas with the greatest need.
The announcement highlights efforts to attract private investment into regional development and housing, with local leaders expected to play a role in identifying opportunities and working with investors.
During the visit, Burnham and German Chancellor Friedrich Merz also convened British and German business leaders for the first UK-Germany Regional Growth Forum. The meeting focused on opportunities to strengthen regional economies, encourage investment and build partnerships between businesses and local authorities.
Burnham said economic growth should benefit communities across the country rather than being concentrated in a few places.
“Germany has shown what strong regions and local leadership can achieve, and we want to learn from that and share our own experience,” he said.
The leaders agreed to develop a deeper Regional Dialogue involving local areas and regions, with the aim of holding it in 2027.
