Talks for the United Kingdom to join the European Union\u2019s new \u20ac150 billion SAFE defence fund collapsed on Friday, dealing a significant setback to Prime Minister Keir Starmer\u2019s efforts to rebuild relations with Brussels after Brexit. The breakdown ends months of negotiations aimed at strengthening defence cooperation and advancing what Starmer had described as a \u201cnew era\u201d in the UK\u2013EU partnership. The development was first reported by Reuters.<\/p>\n
The SAFE fund, designed to support Europe\u2019s rearmament and secure defence supply chains, was a cornerstone of Starmer\u2019s plan to reset ties with the bloc. The May agreement that launched the diplomatic reset had given Britain the green light to negotiate participation in the programme, which is intended to run for seven years and mobilise around \u20ac150 billion in procurement.<\/p>\n
But with only two days remaining before the deadline, the UK announced that talks had failed. Nick Thomas-Symonds, Britain\u2019s minister for European Union Relations, said that while negotiators had acted \u201cin good faith,\u201d it had become clear that an agreement could not be reached in this first round of negotiations.<\/p>\n
He noted that London would only sign deals that meet national-interest and cost-effectiveness criteria. \u201cWhile it is disappointing that we have not been able to conclude discussions on UK participation in the first round of SAFE, the UK defence industry will still be able to participate in projects through SAFE on third-country terms,\u201d Thomas-Symonds said.<\/p>\n
Under the fund\u2019s rules, procurement contracts require that no more than 35% of component costs originate outside the EU or eligible partners such as Ukraine. That threshold effectively limits Britain\u2019s involvement to the role of an external partner unless a bespoke agreement is reached. Despite the collapse in talks, trading in shares of major UK defence companies BAE Systems, Rolls-Royce and Babcock was largely unaffected.<\/p>\n
An EU Commission spokesperson declined to comment on the details of the failed negotiations but said discussions had been \u201cintense\u201d and conducted \u201cconstructively and in good faith.\u201d The spokesperson added that the fund is \u201copen by design,\u201d meaning Britain can still participate up to the 35% limit applied to non-member states. \u201cWe of course remain fully committed to delivering our ambitious UK-EU security and defence partnership,\u201d the spokesperson said.<\/p>\n
The setback underscores the lingering complexity of rebuilding defence and industrial ties after Brexit. While both sides say they remain committed to deeper cooperation, the collapse of SAFE negotiations raises questions about whether broader defence integration can advance without substantial compromises from London or Brussels.<\/p>\n","protected":false},"excerpt":{"rendered":"Talks for the United Kingdom to join the European Union\u2019s new \u20ac150 billion SAFE defence fund collapsed 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