UK and EU ready for drawn-out battle on defence deal
2732 Mins Read
The European Union is open to deepening defence ties with the U.K., but is approaching negotiations with caution and stringent conditions, reports suggest.
A recent meeting in London between European Commission President Ursula von der Leyen and U.K. Prime Minister Keir Starmer produced a broad agreement aimed at resetting U.K.-EU relations, including a joint declaration on shared security responsibilities and continued support for Ukraine. However, the proposed security and defense pact lacks firm commitments, particularly regarding defense industry cooperation.
The U.K. hopes to participate in the EU’s €150 billion Security Action for Europe (SAFE) fund, which enables countries to borrow for military procurement. But entry into the fund will require a separate agreement, and key issues remain unresolved. These include the financial contribution the U.K. must make, the eligibility of both large and small U.K. defense firms, and whether to apply the EU’s rule limiting non-EU components to 35% in defense projects. Flexibility on that rule could make U.K. participation more viable.
Negotiations are expected to be complex, with some EU member states wary of allowing U.K. companies to benefit without clear mutual gains for EU industries. Officials acknowledge that while the partnership is strategically significant, it is currently light on concrete terms and faces several political and technical hurdles. As a result, hopes for a quick deal may be premature, despite von der Leyen’s optimistic timeline. The success of these talks will depend on careful compromise and mutual trust, which remains fragile following Brexit-related tensions.
