On 24 March 2026, President of the European Commission Ursula von der Leyen and Australian Prime Minister Albanese signed the Australia-European Union Security and Defence Partnership (SDP).

The partnership represents a significant step in European Union (EU)–Australia relations, elevating cooperation beyond its traditional focus on trade and investment. However, as with previous EU-Australia initiatives, its value will ultimately depend on whether it delivers concrete outcomes rather than remaining a largely declaratory framework.

This explainer describes what the partnership entails and highlights what it needs to become successful and impactful.

Key findings

• The SDP opens a new chapter in a bilateral relationship previously focused on trade and investment. 
• The SDP offers a legally non-binding framework for more security and defence cooperation, from defence procurement and intel-sharing to countering of hybrid threats. 
• For the Australian defence industry – both small and large – the agreement offers a pathway to benefit from Security Action for Europe, the EU’s financing instrument for strengthened defence readiness. 
• For the EU, Australia is a key addition to its global network of like-minded security partners, in particular Australia’s geostrategic position in the Indo-Pacific and its experiences in dealing with foreign interference and cyber threats. 
• The SDP fits a trend of the United States’ allies forming new partnerships, but it should be seen as mutually beneficial and complementing, not replacing, existing and longstanding alliances, including those with the US.