UK-EU Defence Fund Talks Hit Impasse

Talks between the UK and the EU regarding Britain's participation in a key European defence fund ended without agreement. The UK government insisted on only committing to financially beneficial deals. Despite the setback, the UK can still join SAFE projects under third-country conditions, amid ongoing collaborations in other sectors.

Negotiations between the UK and the EU over the UK's entry into a vital European defence fund ended in deadlock, the British government announced on Friday. This development marks a setback for the UK's strategy to rebuild relations with the EU post-Brexit.

Led by Prime Minister Keir Starmer, who came into office last year, the UK aimed to secure access to the EU's 150 billion euro Security Action for Europe (SAFE) fund. This would have allowed the UK defence industry to obtain affordable EU-backed loans to purchase military equipment. However, discussions failed mainly due to financial disagreements.

UK Relations Minister Nick Thomas-Symonds emphasized that negotiations were conducted earnestly but underlined that the UK was bound to agreements that align with its national interests. Although an initial deal was not reached, the UK's defence industry remains eligible to participate in SAFE projects as a third-party nation, a condition capped at 35% involvement in contract value.

(With inputs from agencies.)