Europe bulletin: UK Chagos stance, US-UK tech deal, Iceland EU vote

European political and financial developments gathered pace on Wednesday, with Britain clarifying its stance on the Chagos Islands treaty.

Washington and London quietly reviving talks on a tech partnership, and Iceland moving toward a referendum on EU accession.

In corporate news, Banco Santander outlined ambitious 2028 profit and capital targets following major acquisition moves, signaling confidence in its medium-term growth strategy.

UK denies Chagos ratification pause

Britain is not pausing ratification of its deal to hand sovereignty of the Chagos Islands to Mauritius, a UK government source said on Wednesday, after a minister’s earlier comments suggested the process had been put on hold.

The agreement covers the wider archipelago but would keep the strategically important Diego Garcia base operating under a long-term lease arrangement.

The issue has drawn fresh scrutiny after US President Donald Trump criticised the deal, prompting London to stress it will not proceed without Washington’s backing.

The ratification bill remains in the House of Lords, where objections have delayed scheduling of a debate and vote.

US, UK revive tech deal talks

The United States and Britain have quietly resumed talks on their multibillion‑pound “tech prosperity deal,” the Financial Times reported, after the initiative was put on ice last year amid wider trade wrangling.

The pause came after President Donald Trump pressed the UK to make concessions in broader negotiations.

The revived discussions are expected to focus first on civil nuclear technology, with officials also weighing a joint summit on fusion, according to people briefed on the talks.

Iceland plans EU accession referendum

Iceland will hold a referendum “over the coming months” on whether to reopen accession talks with the European Union, Prime Minister Kristrún Frostadóttir said on Wednesday.

Speaking after meeting Poland’s Prime Minister Donald Tusk, she said the government will focus on preparations for the vote, which would ask the public if Iceland should restart negotiations it halted in 2013.

Interest in the EU question has revived as living costs have risen at home and Russia’s war in Ukraine continues to reshape Europe’s security outlook, according to recent polling.

Iceland is a member of the European Economic Area but not the EU.

Santander targets €20B profit by 2028

Banco Santander on Wednesday set a new 2028 goal of more than 20 billion euros ($23.6 billion) in profit and lifted its return-on-tangible-equity target to above 20%.

The targets were presented ahead of an investor update in London following its agreed $12.2 billion purchase of Webster Financial in the US and last year’s deal for Britain’s TSB.

Santander also said it wants to cut its cost-to-income ratio to about 36% by end-2028 from 41.2% in 2025.

It reiterated a 50% payout policy, while planning to raise the cash share from 2027 as it targets a CET1 ratio around 13% by 2028.

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