Britain says talks to join EU defence fund have broken down
By Alistair Smout and Andrew Gray
LONDON/BRUSSELS (Reuters) – Talks to join the European Union’s defense fund SAFE have ended in a setback for a much-vaunted reboot of post-Brexit relations aimed at strengthening Europe’s defence, Britain said on Friday.
Prime Minister Keir Starmer touted a “new era” in Britain’s relations with the EU in May with a deal to restart defense and trade ties that would allow London to negotiate joining a 150 billion euro ($173 billion) fund to rearm Europe.
However, two days before the negotiations were to be concluded, Britain said it would not be possible to reach an agreement.
Nick Thomas-Symonds, the UK’s minister for European Union Affairs, said: “While it is disappointing that we have not been able to complete discussions regarding the UK’s participation in the first round of SAFE, the UK defense industry will be able to continue to participate in projects through SAFE on third country terms.”
“The negotiations were conducted 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.”
‘LIMIT BREAKING’ SETUP IN EUROPEAN DEFENSE PROCUREMENTS
Shares in Britain’s largest publicly traded defense companies (BAE Systems, Rolls-Royce and Babcock) were unaffected by the news.
Under the terms of the fund, procurement contracts must ensure that no more than 35% of component costs come from outside the EU or other participating countries, such as Ukraine.
Aerospace and defense industry group ADS expressed disappointment, saying the “limited level of participation does not represent the scale of the potential that SAFE offers”.
“This lost opportunity for the UK’s defense and security supply chain is a frustrating setback, particularly following the successful reset of UK-EU relations in May 2025, at a time when stability and investment in European defense is needed most,” said ADS CEO Kevin Craven.
Negotiators had debated whether Britain’s participation could be capped at 50 per cent, but Britain opposed EU demands that it contribute billions of euros for access.
Starmer sought to draw a contrast to the often rancorous relations between previous Conservative governments and the EU during negotiations for Britain to leave the bloc, which were completed in 2020. He also took a leading role in coordinating European support for Ukraine.
The EU Commission spokesman declined to comment on the results of the talks, saying that the talks were intense but constructive and carried out in good faith.
