UK-EU Defense Talks Crumble Over Monetary Conditions
Both parties had been negotiating a financial framework that would grant British defense contractors access to a portion of loans distributed through the EU's Security Action for Europe (SAFE) program.
In an official statement, Nick Thomas-Symonds, the minister overseeing EU relations, acknowledged it was "disappointing that we have not been able to conclude discussions" on the UK's participation in the initial bidding phase.
"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," Thomas-Symonds was quoted by media as saying.
Media reported that the European Commission indicated dialogue could restart later, observing that consensus could not be reached "at this time" as the UK had acknowledged it should contribute a fee, but maintained it would not commit to an arrangement at any cost.
The bloc's SAFE initiative, unveiled in March, forms part of a wider EU effort to reconstruct defense infrastructure following the Russia-Ukraine conflict, with the European Commission authorized to borrow up to €150 billion ($173 billion) to supply extended-term loans to member nations.
These funds will bankroll "urgent and large-scale procurement efforts, ensuring that Europe's defense industry can deliver the necessary equipment when it is needed most."
The negotiation failure emerges as London and Brussels pursue discussions on a comprehensive "reset" in bilateral ties under the UK-EU strategic partnership declared in May 2025 to reduce post-Brexit tensions.
Earlier today, German Foreign Minister Johann Wadephul stated at a joint news conference with Turkish Foreign Minister Hakan Fidan in Berlin that the SAFE program should incorporate key NATO allies like Türkiye and the UK.
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