Negotiations over the United Kingdom’s accession to the European Union’s €150 billion defence fund, Security Action for Europe (SAFE), have collapsed after the EU on Friday demanded an entry fee of €6.75 billion. The British government deemed the amount unacceptable and rejected the proposal, SFGate reports.
The SAFE fund, established following Russia’s invasion of Ukraine, provides EU member states with preferential loans for defence procurement. So far, 19 countries have applied for financing, with the largest allocation — €43.7 billion — granted to Poland.
Although London will not join the programme as a full participant, British defence companies will still be allowed to take part in SAFE-funded projects, but only under the rules applied to “third countries,” which cap their contribution at a maximum of 35% of any contract’s value. Prime Minister Keir Starmer had sought broader access to European defence contracts as part of efforts to rebuild relations with Brussels after Brexit, but the EU’s current position significantly narrows the UK’s opportunities.
Source: ceo.com.pl
