> The UK government rejected a request by the European Commission for as much €6.75 billion ($7.8 billion) to join its flagship defense fund, a blow to post-Brexit relations under Prime Minister Keir Starmer that also risks damaging Europe’s efforts to deter Russia. The Commission has proposed Britain should pay a €4 billion to €6.5 billion fee to participate in the Security Action for Europe program, or SAFE, people familiar with the matter said. In addition, it is seeking an administration fee of €150 million to €250 million, according to the people, who requested anonymity because the negotiations are private. “We will only agree deals that provide value to the UK and UK industry,” the UK government said in a statement. “Nothing has been agreed, and we will not give a running commentary on ongoing talks.”
> British companies would stand to benefit if the UK is able to negotiate access to a €150 billion program which allows member states to borrow money to invest in defense capabilities, with expenditure allowed on equipment whose components mainly stem from within the EU, Ukraine, and EEA-EFTA nations. The program is part of the European Union’s attempt to boost defense readiness following Russia’s full-scale invasion of Ukraine in 2022, amid concerns President Donald Trump is scaling back US security commitments on the continent. While the fund is mainly geared toward defense companies from EU member states, Brussels has also been in talks with non-EU nations including the UK and Canada about access. Turkey and South Korea also want to participate. SAFE is funded by the EU through its borrowing capacity, which means that it’s ultimately guaranteed by the bloc’s budget. Member states contribute to the EU budget relative to the size of their respective economies.
> A senior British official described the fees being sought by the Commission as unreasonable and far above what the UK expected to pay for access, confirming London rejected the terms. They said France is taking the most hard-line position in terms of the financial demand from Britain, and that negotiations to bring the numbers down would continue. High-level representations have been made to European Commission President Ursula von der Leyen’s officials, the person added, warning that blocking the UK from joining SAFE would undermine European rearmament and send a message to Russian President Vladimir Putin that the continent is not serious about countering aggression from Moscow. The EU’s internal views on the payments being sought from the UK differ, some of the people familiar with the matter said. Some capitals are siding with Britain in supporting them paying a smaller amount, while others want to rigidly apply rules about access, they said. The coming weeks will be key to resolving the impasse. Member states have until Nov. 30 to submit concrete projects for funding. The SAFE program is designed to help produce defense capabilities that Europe needs most, including drones, cyber-defense, missiles or an European air shield, as the bloc races to develop a military deterrent strong enough to resist Russia.
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French will let Russia take over all of Eastern Europe before they’ll allow their weapons and wines to compete in a fair market.
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> The UK government rejected a request by the European Commission for as much €6.75 billion ($7.8 billion) to join its flagship defense fund, a blow to post-Brexit relations under Prime Minister Keir Starmer that also risks damaging Europe’s efforts to deter Russia. The Commission has proposed Britain should pay a €4 billion to €6.5 billion fee to participate in the Security Action for Europe program, or SAFE, people familiar with the matter said. In addition, it is seeking an administration fee of €150 million to €250 million, according to the people, who requested anonymity because the negotiations are private. “We will only agree deals that provide value to the UK and UK industry,” the UK government said in a statement. “Nothing has been agreed, and we will not give a running commentary on ongoing talks.”
> British companies would stand to benefit if the UK is able to negotiate access to a €150 billion program which allows member states to borrow money to invest in defense capabilities, with expenditure allowed on equipment whose components mainly stem from within the EU, Ukraine, and EEA-EFTA nations. The program is part of the European Union’s attempt to boost defense readiness following Russia’s full-scale invasion of Ukraine in 2022, amid concerns President Donald Trump is scaling back US security commitments on the continent. While the fund is mainly geared toward defense companies from EU member states, Brussels has also been in talks with non-EU nations including the UK and Canada about access. Turkey and South Korea also want to participate. SAFE is funded by the EU through its borrowing capacity, which means that it’s ultimately guaranteed by the bloc’s budget. Member states contribute to the EU budget relative to the size of their respective economies.
> A senior British official described the fees being sought by the Commission as unreasonable and far above what the UK expected to pay for access, confirming London rejected the terms. They said France is taking the most hard-line position in terms of the financial demand from Britain, and that negotiations to bring the numbers down would continue. High-level representations have been made to European Commission President Ursula von der Leyen’s officials, the person added, warning that blocking the UK from joining SAFE would undermine European rearmament and send a message to Russian President Vladimir Putin that the continent is not serious about countering aggression from Moscow. The EU’s internal views on the payments being sought from the UK differ, some of the people familiar with the matter said. Some capitals are siding with Britain in supporting them paying a smaller amount, while others want to rigidly apply rules about access, they said. The coming weeks will be key to resolving the impasse. Member states have until Nov. 30 to submit concrete projects for funding. The SAFE program is designed to help produce defense capabilities that Europe needs most, including drones, cyber-defense, missiles or an European air shield, as the bloc races to develop a military deterrent strong enough to resist Russia.
French will let Russia take over all of Eastern Europe before they’ll allow their weapons and wines to compete in a fair market.