European Union diplomats have said that the UK will have to contribute to any boosts earned by British businesses from contracts won through the bloc’s new €150 billion (£130 billion) Security Action for Europe (Safe). The plans being drawn up by the EU aim to counter the growing threat from Russia by boosting military spending across the continent.
In May, Prime Minister Sir Keir Starmer said the UK would join the EU’s project, which formed part of his plan to “reset” bilateral relations. Participating in Safe would provide “new opportunities for our defence industry, supporting British jobs and livelihoods”, Sir Keir said. However, it has now been revealed that Britain will be required to cough up a percentage of the value of any weapons bought from UK companies under the Safe plan.
Several EU diplomats told the Financial Times that London will be required to “recompense Brussels” for participating in the scheme to procure drones, missile defence systems and other capabilities.
“What was written in the Safe regulation is that there shall be a fair balance as regards the contributions and the benefits” of outside countries such as the UK, said one of the diplomats.
They explained that since British businesses would receive EU money to create jobs and expand capacity under the scheme, the UK government must pay a percentage into the fund to balance economic benefits.
However, member states are still discussing the exact figure that Britain will have to pay to access the fund as they finalise their position on the deal with the UK, which is expected to be published this week.
The Safe fund forms part of the bloc’s larger plan to mobilise €800 billion (£693 billion) in new defence spending by 2030, amid the growing threat from Russia and calls by US President Donald Trump for Europe to pay for more of its own security.
Its loans will allow member states and designated “third countries”, such as the UK, to engage in joint procurement.
France in particular, which views Safe as a way to expand the EU arms industry, is pushing for a high UK contribution and wants to limit British access to the fund. However, other countries, led by Germany, want to ensure the UK is not dissuaded from joining, another of the diplomats said.
According to the FT, the UK Cabinet Office said it would not pre-empt future discussions with the EU.
“It is in all our interests for the UK and EU to bring together our unique capabilities and expertise to make Europe a safer, more secure, and more prosperous place,” it added.