Mr. Hunt and other senior officials in the British government announced on Friday that England would cease negotiations to join a major European Union defense fund. Unfortunately, an agreement wasn’t able to be made. Members discussed multiple topics, including the new Security Action for Europe (SAFE) fund. This fund, called Next Generation EU, is worth 150 billion euros, or about $170 billion. Ukraine supplemental This fund would strengthen U.S. and allied defense industrial bases to more rapidly supply Ukraine—and ultimately, Europe—with additional weapons.
For example, the U.K. demanded access to the SAFE fund as a means of providing benefits to its own domestic defense industry. The proposed arrangement would have enabled British firms to secure affordable loans backed by the EU for military equipment procurement. Negotiations faltered over monetary terms. The EU insisted on PHPD in contributions from the U.K. that the British government could not or would not go to. This rift was enough to cause their negotiations to fall apart.
British EU Relations Minister Nick Thomas-Symonds was pleased, noting that the negotiations proceeded in good faith. He emphasized that the U.K.’s position remained clear throughout the process: any agreements must align with national interests and deliver value for money. Thomas-Symonds underscored that the U.K. would automatically participate in SAFE for as much as 35% of a contract’s value. He has been trying to agree to a higher threshold of participation.
The failure of these talks represents a setback for Prime Minister Keir Starmer’s commitment to mend relations with the EU, which have been strained since Britain’s departure from the union in 2020. Keen to portray a new Labour government as one committed to repairing relations with European allies, this news will have stung most for Starmer and co.
As the situation unfolds, experts suggest that this breakdown may hinder the U.K.’s defense industry, which had anticipated utilizing the SAFE fund’s resources for advancements in military technology and infrastructure. The impasse makes it harder for the US to build a coalition with the EU in future collaborations. It heightens fears about the effects on U.K.-EU relations after Brexit more broadly.
