UK-EU defense talks collapse over funding dispute
The negotiations focused on finding a payment structure that would give British defense firms access to portions of the loans available through the EU’s Security Action for Europe program.
In a public statement, Minister Nick Thomas-Symonds, who oversees relations with the EU, said it was "disappointing that we have not been able to conclude discussions" regarding UK participation in the first bidding round. He added that the UK had negotiated sincerely but maintained a consistent line: "Negotiations were carried out in good faith, but our position was always clear: we will only sign agreements that are in the national interest and provide value for money."
According to general reports, EU officials indicated that the door could reopen later, noting that while the UK accepted the idea of an entry fee, “an agreement could not be found at this time” because Britain refused to accept terms it felt were excessive.
SAFE, unveiled in March, forms part of a broader European effort to rebuild and strengthen military capabilities following the Russia–Ukraine conflict. Under the scheme, the European Commission plans to borrow up to €150 billion ($173 billion) to issue long-term loans to member states, funding “urgent and large-scale procurement efforts, ensuring that Europe’s defense industry can deliver the necessary equipment when it is needed most.”
The failure of these talks comes as London and Brussels continue wider efforts to recalibrate their post-Brexit ties under the strategic partnership framework announced in May 2025.
Earlier in the day, general accounts of a joint news conference in Berlin quoted German Foreign Minister Johann Wadephul as saying that the SAFE initiative should ultimately involve major NATO allies such as Türkiye and the UK.
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