Prime Minister Sir Keir Starmer and European Commission President Ursula von der Leyen have reaffirmed their commitment to rapidly implementing the post-Brexit reset deal, amid ongoing negotiations about UK participation in the EU's flagship defence fund.
Defence Fund Discussions Continue
During a Wednesday evening call, the leaders discussed the 150 billion euro security action for Europe (Safe) rearmament fund, which would allow British arms companies to bid for loans. However, reports indicate an impasse over how much the UK should pay to access the scheme.
According to a Downing Street read-out, Sir Keir emphasised that any deals must deliver tangible benefits to the British public and represent value for money. The UK government appears to be resisting EU demands for billions of pounds in contributions without clear advantages for British industry.
Formal Talks Launch Next Week
The leaders agreed to begin formal negotiations on two significant agreements starting next week. These include a permanent sanitary and phytosanitary standards (SPS) deal covering food and drink regulations, and an agreement linking UK and EU emissions trading systems.
Ms Von der Leyen stated on social media platform X that work continues toward a mutually beneficial outcome on UK participation in the SAFE instrument while confirming the start of SPS and ETS negotiations.
Economic Benefits and European Security
Nick Thomas-Symonds, the EU relations minister, welcomed the progress, noting that these agreements could add nearly £9 billion to the UK economy while supporting British jobs and reducing consumer costs.
The Prime Minister stressed that any defence agreement must not only benefit Britain but also strengthen wider European security, highlighting the interconnected nature of regional defence capabilities.
Both leaders reaffirmed their commitment to moving forward rapidly with measures agreed at May's historic Brexit reset summit, recognising that a broad and constructive relationship serves both UK and EU interests. They plan to maintain close contact, with their next expected meeting occurring at the upcoming G20 summit.
