The European Commission has sharply reduced the price it wants the UK to pay in order to join its flagship European defence investment programme, lowering the proposed contribution from €6.7bn to €2bn as negotiations approach a critical deadline.
The revised figure marks a major concession from Brussels but remains far above the €75mn the UK has offered, leaving both sides under pressure to bridge the gap before November 30.
A Disagreement With Strategic Implications
The dispute centres on the EU’s Security Action for Europe (SAFE) programme — a €140bn loan-guarantee fund designed to accelerate defence production and support European militaries in light of ongoing Russian aggression.
Joining SAFE would give the UK’s defence industry access to a larger share of EU-funded contracts. Under existing rules, EU countries can already source up to 35% of their defence purchases from British companies. Membership in SAFE could increase that figure to 50%.
But Brussels insists London must contribute proportionately to the programme’s financial capacity.
EU Split Over How Hard to Push the UK
The talks have exposed deep divisions inside the EU.
- Germany, Sweden, the Netherlands and several northern states want a deal, warning that failure to reach an agreement with a key NATO ally sends the wrong signal while Russia continues its war on Ukraine.
- France and allied countries, however, argue the UK must pay a substantial contribution and that the EU should not back down simply to secure British participation.
One diplomat criticised the Commission’s initial €6.7bn request as excessive, saying it would have risked derailing the broader EU–UK reset agreed during the joint Windsor summit last May.
UK Stance: “Value for Money” Is Non-Negotiable
London maintains that any contribution must be fair to taxpayers and proportionate to what British industry stands to gain.
Defence Secretary John Healey said the UK is open to joining SAFE but “not at any price”.
British officials have proposed a formula under which the UK would:
- cover a share of the administrative costs of the scheme
- contribute a portion of the loan guarantees that support the fund
They emphasise that the UK would not have access to SAFE loans itself — but hope participating EU states will use the financing to buy British-made equipment.
Deadline Approaches With Both Sides Seeking a Deal
Despite the remaining gap, UK officials insist the negotiation is still on track.
“We’re not looking to walk away,” one senior official said. “Both sides want this to happen.”
With days left before the deadline, diplomats say a compromise is possible, though far from guaranteed.
Brussels: Benefits Must Match the UK’s Contribution
The European Commission declined to release financial details publicly but reiterated its position that any UK contribution must reflect the commercial advantages it would receive.
The Commission stressed that under current rules — even without joining SAFE — the UK already enjoys significant access to EU defence procurement.
“SAFE already offers substantial benefits to the UK and its industry,” the Commission noted.
A Test of Europe’s Security Cooperation
Whether the two sides can reach an agreement will shape the future of EU–UK security cooperation at a time when European defence capacity is under unprecedented pressure.
Even a reduced price tag highlights the political complexity of rebuilding ties in the post-Brexit era — especially in areas where both London and Brussels see strategic benefit, but disagree sharply on cost.
