Negotiations between Britain and the European Union for the UK to join the bloc’s flagship defense financing mechanism have officially broken down, marking a significant failure in the post-Brexit efforts to deepen security cooperation. The collapse of talks regarding the Security Action for Europe (SAFE) fund was announced by Britain’s Minister for European Union Relations, Nick Thomas-Symonds.
The SAFE fund, a multi-billion-euro initiative designed to help EU nations rearm and modernize their capabilities, was seen as a crucial vehicle for strengthening the UK’s strategic ties with the continent. However, sources indicated that the negotiations foundered primarily over the financial demands placed upon London and the extent of market access granted to British defense contractors.
Thomas-Symonds emphasized that the government would “only sign agreements that are in the national interest and provide value for money.” While the exact figures remain undisclosed, reports suggest the EU demanded a hefty, multi-billion-dollar entry fee, which the UK government ultimately rejected as excessive.
Despite the setback, both sides expressed a willingness to continue cooperation. While the UK will not participate fully in the initial phase of SAFE, the British defense industry can still engage in specific projects under “third-country terms.” This participation, however, will be restricted by SAFE’s procurement rules, which limit external component costs to no more than 35%.
The failure to reach an accord is a blow to Prime Minister Keir Starmer’s agenda, which has prioritized forging a “new era” of cooperative relations with the EU following the UK’s departure. The European Commission noted that the negotiations were conducted “in good faith” and reaffirmed that the defense fund remains open for future discussions, suggesting the door is not permanently closed to British involvement.
