🔗 Share this article

French officials have proposed a plan to restrict the use of UK-produced defense equipment in the EU’s €150 billion defence program, a move that could complicate talks over the UK’s involvement in the initiative.

Proposed Fifty Percent Limit on UK Content

According to officials, France has suggested a fifty percent ceiling on the value of British components in projects financed through the EU’s Security Action for Europe fund.

This €150 billion lending initiative is part of the bloc’s wider effort to increase military spending and strengthen continental defense resources.

UK-EU Security Partnership

Earlier this year, British leader the UK’s premier and European Commission President Ursula von der Leyen signed a landmark security and defence partnership, paving the way for increased UK involvement in EU defence projects.

Without this agreement, the Britain would have been limited to supplying no more than 35% of the value of parts in any program-supported initiative.

Current Negotiations and Potential Challenges

However, the British government still needs to negotiate a detailed arrangement to obtain a more significant role for its military industry, and the European Union may set further restrictions on British participation.

Moreover, the UK administration must agree on a cost to join the scheme.

Such suggested restrictions on UK contributions were raised during internal meetings as European countries prepare a negotiating mandate for the EU executive ahead of talks with the British leadership.

Member State Reactions

The vast majority of member states reportedly reject restrictions on UK participation, favoring leeway in defence procurement.

An European official described the proposed 50% cap as a “classic Paris fixation.”

Paris has consistently advocated for a EU military sector that is autonomous from the US, and has argued that post-Brexit, the UK should not gain from the bloc’s single market advantages.

UK Aims and Benefits

The UK does not intend to apply for loans from the scheme—as these are earmarked for European countries—but hopes that British military firms will profit from the investment surge.

A official deal to enter the program would make it easier for UK firms to participate in defence supply chains, supplying equipment ranging from unmanned aerial vehicles and munitions to sophisticated artillery systems with deep strike abilities.

Formal Statements

“Back the European Commission in its efforts to set the terms for the UK’s association with SAFE. The basis for this is provided by the SAFE regulation, which stipulate that some of parts must originate in the European industry.”

— Spokesperson, French Permanent Representation

“The UK is an essential partner for the European Union. We share many shared interests, hence our will to sign a mutually beneficial agreement to fully integrate them with our defence instrument.”

— EU Defence Spokesperson, European Commission

Next Steps

Britain must also negotiate a membership cost to enter the program, which is intended to cover administrative expenses.

European officials are scheduled to review UK entry to SAFE this coming days, along with a similar proposal for the Canadian government, which recently concluded its own security agreement with the EU.

Latest Participating Nations

The European Commission reported that 19 member states will take out SAFE loans.

• Poland is taking the largest amount of €43.7 billion.
• The French state and the Hungarian administration will each obtain €16.2 billion.
• Romania is set to access €16.7 billion.
• Italy will secure €14.9 billion.

These EU-supported funds reduce interest rates for several countries and can be allocated for equipping national armies or aiding Ukraine.