Negotiations for the UK to join the EU's €150bn (£131bn) defence fund have collapsed, dealing a blow to Prime Minister Keir Starmer's efforts to reset relations with the bloc. The UK had been seeking to participate in the Security Action for Europe (Safe) fund, a low-interest loan scheme aimed at boosting European defence spending in response to the Russian threat and shifting US relations.
The talks broke down over the financial contribution demanded from the UK. EU officials reportedly sought an entry fee of up to €6bn, far exceeding the administrative fee the UK government had expected to pay. Peter Ricketts, chair of the House of Lords European affairs committee, described a rumoured €6.5bn fee as 'so off the scale that it suggests some EU members don’t want the UK in the scheme'.
Nick Thomas-Symonds, the minister for EU relations, expressed disappointment but said the UK defence industry could still participate in Safe projects on third-country terms. '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,' he said.
The collapse comes despite a May agreement between Starmer and European Commission President Ursula von der Leyen on an EU-UK security and defence partnership, which had opened the door to greater UK participation. Without this pact, the UK could not supply more than 35% of components in any Safe-funded project.
Defence Secretary John Healey had warned the UK was willing to walk away, telling the i newspaper it would not sign up for 'any price'. Thomas-Symonds downplayed the setback, noting the UK continues to lead the Coalition of the Willing for Ukraine and has struck defence agreements across Europe in the past year.
