Blitz Bureau
NEW DELHI: Britain has said that talks to join the European Union’s defence fund SAFE have broken down. The two sides had been at loggerheads over a fee to allow British defence firms to access an enhanced share of loans issued under the pact.
Prime Minister Keir Starmer hailed a “new era” in Britain’s relationship with the EU in May, with a deal to reboot defence and trade ties that allowed London to negotiate joining the 150 billion euro ($173 billion) fund to rearm Europe, reported Reuters But two days ahead of the deadline to conclude talks, Britain said on November 28 it would not be possible to reach an agreement.
“While it is disappointing that we have not been able to conclude discussions on UK participation in the first round of SAFE, the UK defence industry will still be able to participate in projects through SAFE on thirdcountry terms,” said Nick ThomasSymonds, Britain’s Minister for European Union Relations. “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.” Under the terms of the fund, procurement contracts must ensure that no more than 35 per cent of component costs originate outside the EU or from other participating countries such as Ukraine.
Aerospace and defence industry group ADS expressed disappointment, saying the capped level of participation “does not represent the scale of the potential presented by SAFE”. “This lost opportunity for the UK’s defence and security supply chain is a frustrating setback after the successful reset of UK-EU relations in May 2025, especially at a time when stability and investment in European defence is needed most,” said Kevin Craven, CEO of ADS.
Negotiators had discussed whether British participation could instead be capped at 50% per cent but Britain balked at EU demands that it contribute billions of euros for access.
