City’s Lady Mayor urges deeper UK–EU ties to secure Europe’s defence future

The City’s call for UK EU collaboration on defence finance was given renewed force last night as the Lady Mayor, Dame Susan Langley, used a Guildhall banquet in honour of Germany’s President, Frank-Walter Steinmeier, to argue that London and Frankfurt must work more closely to support Europe’s long-term security.

Speaking to more than 600 guests gathered beneath the medieval vaults of Guildhall, including Her Royal Highness The Princess Royal and Vice Admiral Sir Tim Laurence, Dame Susan offered a pointed reminder that Europe could not afford hesitancy in the face of rising geopolitical tension. She urged governments and financial centres to remove barriers that impede the flow of capital across the Continent.

“In these volatile geopolitical times, friends should work together,” she said. “London, as Europe’s leading financial centre, can provide access to global capital markets and bridge the investment gap on both sides of the Channel.”

Her argument rested on a simple premise: that Europe’s collective defence ambitions cannot be realised without a resilient financial infrastructure capable of mobilising private capital. London, she noted, has the depth of markets and the global reach to play an organising role, provided it works “with fellow financial centres, such as Frankfurt”, to ensure an open, complementary system for investment.

The Lady Mayor welcomed the progress made earlier this year through the EU-UK leaders’ summit, where both sides confirmed a new Security and Defence Partnership, and highlighted the recently signed Kensington Treaty between Britain and Germany as evidence that shared interests remain stronger than political drift.

Yet she warned that intent alone would not be enough.

“We must deliver on this,”

she told the assembled guests. “Germany, the UK and many other European countries have made commitments to major increases in defence spending and this City will be an important source of the finance we need. With geopolitical turmoil, we do not have the luxury of time.”

Her remarks were set against the bleak backdrop of the war in Ukraine, where prospects for a negotiated peace appear remote. The President of Germany, who earlier in the day addressed Parliament, has consistently urged European nations to accelerate defence investment.

For Dame Susan, the challenge is one of political will as much as economic design. “Discussion is good. Action is better,” she said, adding that Britain and Germany, as Europe’s two largest economies, “can step up to lead and be at the forefront” of a new phase of cooperation between governments, businesses and citizens.

Her appeal for openness and urgency echoed broader conversations across European policy circles about the future of defence procurement, shared industrial capacity and the role of capital markets. Analysts have noted that private finance is already reshaping defence innovation, from cyber-security to advanced technologies, with research institutions such as the Royal United Services Institute offering insight into how market forces are influencing the sector.

Cultural ties were also visible throughout the evening, with guests observing that the banquet’s tone reflected a long-standing Anglo-German relationship that has weathered political change. For the City of London, the Lady Mayor’s intervention signals a determination that the Square Mile should sit at the centre of any renewed European defence framework, making full use of its global financial infrastructure, from capital markets to research expertise offered by organisations such as Chatham House.

Her final words carried the quiet urgency of someone aware of the narrowing window for meaningful action. “Time waits for no man, or woman,” she said. “To fail to act is to fail to prepare.”

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