Britain says talks to join $200 billion EU defence fund have broken down
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Britain wanted to be part of the EU's €150 billion (S$225 billion) fund to rearm Europe.
PHOTO: REUTERS
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- UK talks to join the EU's €150 billion Safe defence fund have failed before the deadline, despite a push to reset post-Brexit relations.
- Britain stated it would only agree to terms in the "national interest" and offering "value for money", but will still participate up to 35%.
- The EU Commission noted the intense, constructive negotiations, emphasising Safe's openness, and Britain's defence firms' shares remained unaffected.
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LONDON/BRUSSELS – Britain said on Nov 28 that talks to join the European Union’s defence fund Safe had broken down, in a major setback to a much-vaunted post-Brexit reset of relations aimed at strengthening the continent’s defence.
British Prime Minister Keir Starmer had hailed a “new era” in Britain’s relationship with the EU in May, with an agreement to reset defence and trade ties that allowed Britain to negotiate to join the €150 billion (S$225 billion) fund to rearm Europe.
But two days ahead of the deadline to conclude talks, Britain said that it would not be possible to reach an agreement.
“While 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,” said Mr Nick Thomas-Symonds, Britain’s minister for European Union Relations.
“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.”
Under the terms of the fund, procurement contracts must ensure that no more than 35 per cent of component costs originate outside the EU or other participating countries like Ukraine.
Trading in shares of Britain’s biggest listed defence companies BAE Systems, Rolls-Royce and Babcock were not affected by the news.
An EU Commission spokesperson declined to comment on the outcome of ongoing discussions, but said they had been intense, carried out constructively and in good faith.
“If an agreement could not be found at this point in time, let’s not forget that Safe is open by design,” the spokesperson said, noting Britain could participate up to the 35 per cent limit.
“We, of course, remain fully committed to delivering our ambitious UK-EU security and defence partnership.” REUTERS
