EU CUTS UK’S DEFENCE FUND FEE – Brussels drops demand to €2bn as deadline for SAFE deal approaches
The European Commission has sharply reduced the UK’s entry fee for the new €150 billion SAFE defence fund, cutting its proposed contribution from €6.7 billion to around €2 billion.
The revised figure comes after weeks of negotiations and divisions within the EU, with Germany, Sweden and the Netherlands urging closer cooperation with London, while France insists the UK should pay more for access.
If Britain joins the scheme, UK defence firms could see their contract access ceiling rise from 35 per cent to 50 per cent, giving them a substantial industrial advantage.
Despite the concession from Brussels, the UK has so far put forward only €75 million – far below the EU’s new expectation.
The SAFE framework is central to Europe’s push to bolster defence production amid global instability, but participation from major non-EU partners has become politically fraught. Officials say EU leaders want a deal concluded before the 30 November deadline, though significant financial and political gaps remain. Talks are expected to intensify this week as both sides attempt to avoid a collapse in negotiations.
