Starmer’s one key Brexit reset demand to Macron to prepare UK for war

Tricky negotiations lie ahead if Starmer is to persuade France to give the UK access to a new EU weapons fund

The UK wants to gain access to the EU’s multibillion-pound weapons fund by the end of the year with the Government set to press France on the matter during Emmanuel Macron’s state visit.

A senior Government source told The i Paper that access to the 150bn euro (£126bn) rearmament loans fund was the UK’s most urgent priority in attempting to deliver on the promise of Sir Keir Starmer’s Brexit reset deal agreed with the EU in May.

A UK-EU security and defence partnership was one of the centrepieces of the agreement, but the biggest prize – British access to the loans fund known as Safe – was left for future negotiations.

The source said the Government was now targeting a deal by the end of the year and is likely to press France – one of the EU’s most sceptical nations about UK involvement – on the case for British defence firms to secure as much access as possible during talks in London this week. 

Safe is designed to ramp up weapons procurement to arm the continent and came in response to concerns over US President Donald Trump’s commitment to European security.

The UK sees access as key to bolstering its defence capabilities in the face of Russian aggression, and believes it would boost the economy and jobs by giving British firms the opportunity to bid for contracts to make components and produce weapons.

Sir Keir Starmer and Macron were holding a bilateral meeting on Wednesday, with UK and French ministers and officials conducting talks at various levels this week.

France is believed to be one of the EU member states which is attempting to restrict UK involvement in the loans scheme. 

Diplomatic sources made clear after the UK and EU signed their Brexit reset deal in May that some member states want British arms’ firms access to be restricted by “conditions” which ensure a continuation of the “European preference” for rearmament.

Reports have suggested France wants to limit British involvement in contracts awarded under the programme, which will offer loans to EU and other participants to buy arms, to just 15 per cent.

This could mean that UK firms such as BAE Systems – the biggest defence company in Europe – and Rolls-Royce, will lose out to the French firm Dassault, which makes the Rafale jet fighter, and the Franco-German firm KNDS, which makes Leopard tanks.

However, ministers are expected to press Macron and his team this week on the need to negotiate good access for the UK, and quickly, given the urgency of the threat from Russia and the need to build up European defences as the United States withdraws from backing the continent.

There are also splits in the EU, with some member states backing the UK in pushing for a quick agreement with as much access as possible, with sources last month suggesting a deal could be done by November.

The i Paper understands that the UK believes the European Commission, which will run the negotiations, is closer to the pro-British involvement countries than those that want to restrict access.

But even those nations believe British defence firms will only have access to Safe loans for procurement projects done jointly with EU counterparts.

This in itself is not unusual, with BAE building the Typhoon fighter jet in collaboration with Italy’s Leonardo and the France-headquartered Airbus.

Tricky negotiations ahead

There are also likely to be thorny negotiations over how much money Britain will contribute towards the fund, with the Government facing a struggle to balance the public finances.

In his address to the UK Parliament on Tuesday, Macron said his state visit marks a “new stage” in cooperation with Britain, particularly on security and defence.

“Our two countries, the only European nuclear weapon states, the leading armed forces of the continent, together accounting for 40% of European military budgets, both fully shoulder the responsibility when it comes to European security,” he said.

“And we are faced with new threats, with aggressive nuclear powers, with sometimes hesitating alliances, and the return of major conflict on our continent. This is why, in two days, our summit is so important, and the announcement we prepared so historical.”

He said there is an expectation that the UK and France, “faced with revisionist neighbours” have a “special responsibility for the security of the continent”.

Macron said it is time to “make sure that not only our two countries will save themselves by their own exertions, but also that we will save Europe by our example and our solidarity”.

Alongside talks on the EU weapons scheme, Starmer and Macron are set to update the bilateral Lancaster House defence pact signed in 2010 and are preparing a deal on defence exports including collaboration on military aviation components, according to Politico.