The UK has confirmed it will not take part in the European Union’s €150 billion Security Action for Europe (SAFE) defence fund after failing to agree terms it considered good value, according to the government.
During Defence questions in the House of Commons, Liberal Democrat MP James MacCleary pressed Defence Secretary John Healey on whether the UK had declined access to the EU scheme, which is intended to support joint defence procurement and industrial cooperation among European partners. MacCleary argued that, “at a time of war,” the UK should be working more closely with European allies and asked whether ministers had rejected SAFE at a proposed cost of around £2 billion.
Healey confirmed that the UK had sought to negotiate access to the fund following the signing of a UK–EU security and defence partnership earlier this year, but said the terms were not acceptable. “We committed ourselves to negotiating with the European Union for access to the SAFE funding arrangements,” he told MPs. “From the start, we recognised that there would need to be a financial contribution from the UK.”
However, Healey said the government had set clear conditions for participation. “We also said from the start that SAFE needed to be good value for money for British taxpayers and British industry,” he said. “It did not meet those tests.”
As a result, Healey said the UK was “unable to reach a deal with the European Union” on SAFE, but stressed that the decision did not signal a retreat from defence cooperation with Europe. He said the government would “continue to back Great British defence industrial firms as they sell into Europe” and pursue bilateral arrangements that could deliver benefits beyond the scope of the SAFE programme.
I’m not sure why anyone would expect us to get favourable access terms to an EU defence fund. On the same token we should start nationalising THALES assets in the UK and probably Leonardo too.
These assets are too valuable to leave in EU hands.
Good. The EU has always treated the UK like dogs, so the only interactions we should have with them in defence matters should be on equal footing or not at all
I think France had an issue with use joining. History repeating itself.
This is a bit of a own goal for the EU and UK to Russia’s advantage. It looks like you cannot depend on the US, so the EU and UK will stand or fall together.
Both the EU and UK need to think again!
I agree. It’s interesting that Canada got terms that we were not offered it seems. My take on that is that Canada would of course be very much a buyer of whatever comes out of that European cooperation whereas the UK is seen as a competitor within it and thus needs to be disadvantaged from the perspective of France certainly which loves to be the main driver. Depressingly familiar and exactly the sort of weakness and disunity that Russia loves to see and exploit. Europe is its own worst enemy.
One of many reasons why we voted to leave!
SAFE is little more than an attempt by the EU to show it is relevant to defence matters. We lose nothing by not participating.
Is this related to the controversy about the EU asking the UK to pay into its budget for access to the programme? Seems like the UK dodged a bullet.
French trying to protect their arms industry demanded an extortionate joining fee from the U.K., totally out of proportion with what Canada is to pay to join the scheme. Apparently other EU countries annoyed at French self-centredness during such perilous times.
U.K. should set up its own rival loan scheme for nations wanting to buy U.K. weaponry. Ad-hoc financial schemes are common, but something like this would send a message too.
Yup it’s so transparent, France wants to keep a closed shop other than drawing an Anglophile nation into the club which will thus become a considerable buyer of its, stuff first European second (especially those it has a hand in) and non Uk weaponry generally with all the political and economic influence that comes with it. I hope the Govt is countering this in some way, I have been concerned that in the overt striving to stay in Trump’s good books we are neglected Canada in particular which if so would be deeply short sighted be it in a World where MAGA like zealots follow Trump or whether the US goes back to a more liberal outlooking Administration or as seems very possible an alternating scenario of intensifying self hate that continues to make them an unreliable ally.
For once i applaud the Government for this decision. If its poor value for the UK then leave it alone. Maybe the EU will come back to the table with a better offer…..I can’t imagine that they don’t want us involved.
I believe this is a simple matter of the EU asking for a financial contribution from us that would in all probability exceed the value of any funding we would secure from the SAFE fund- just as the EU always insisted that we make a substantial net financial contribution to the organisation when we were members (effectively subsidising the majority of other members which were net recipients). Why anyone would agree to such terms is beyond me.
Intentionally priced out. There was to be no danger that the UK could become a NET beneficiary of the scheme but had to slip back into its old, pre Brexit role of being a NET EU contributor.
I believe the UK Government was looking to pay no more than £87 Million, considerably less than the £2 Billion that the EU wanted. On the other hand, that would still dwarf the fee that Canada has agreed for accession into the SAFE fund, some £15 Million or there abouts. Of course, I’m sure the calculation is that Canada, with a much smaller defence industry, will likely pay for itself by buying more EU equipment than it ultimately sells. If this encourages them to go for the German submarines over the Korean ones, then the strategy will have paid for itself many times over.
I still think this, from an EU perspective, is a tad short sighted given the UK’s more prominent role in European defence. The correct choice from the point of view of UK Plc.
Got to love the EU. All friends and close allies until politics and self interest rears it’s head.