🔗 Share this article

France has put forward a plan to restrict the use of UK-produced defense components in the European Union's €150 billion defence program, a step that could complicate negotiations over the UK’s involvement in the scheme.

Suggested Fifty Percent Cap on British Content

According to diplomatic sources, French representatives has proposed a fifty percent ceiling on the worth of UK parts in projects funded through the EU’s SAFE fund.

This €150bn lending initiative is a component of the EU’s broader push to increase defence spending and reinforce European security resources.

British-European Defense Cooperation

In May, British leader Keir Starmer and European Commission President Ursula von der Leyen signed a landmark security and defence partnership, paving the way for greater British participation in EU defence projects.

Without this agreement, the Britain would have been restricted to providing no more than 35% of the value of parts in any SAFE-funded initiative.

Ongoing Talks and Possible Hurdles

However, the British government still needs to finalize a detailed arrangement to secure a larger part for its military industry, and the European Union could set additional restrictions on British participation.

In addition, the UK government must negotiate a cost to participate in the program.

These proposed limits on British inputs were discussed during internal meetings as European countries draft a negotiating mandate for the European Commission ahead of talks with the UK leadership.

EU Country Reactions

A vast majority of EU countries reportedly oppose restrictions on British involvement, preferring leeway in military acquisitions.

An EU diplomat labeled the suggested fifty percent limit as a “typical French obsession.”

France has consistently advocated for a EU defence industry that is independent from the US, and has contended that post-Brexit, the UK should not benefit from the EU’s single market advantages.

UK Objectives and Benefits

The UK does not plan to request loans from the program—which are reserved for EU member states—but hopes that UK military firms will profit from the investment bonanza.

A official agreement to enter SAFE would make it simpler for British companies to participate in military production networks, supplying equipment ranging from unmanned aerial vehicles and ammunition to sophisticated weaponry with long-range capabilities.

Official Comments

“Back the EU executive in its efforts to set the terms for the Britain’s participation with SAFE. The basis for this is laid out by the SAFE regulation, which state that a portion of parts must come from the EU’s industry.”

— Spokesperson, France’s Permanent Representation

“Britain is an essential partner for the European Union. Have many shared interests, hence our desire to conclude a mutually beneficial deal to fully integrate them with our defence program.”

— Thomas Regnier, EU Executive

Future Proceedings

The UK must also agree on a fee to join the scheme, which is intended to cover administrative costs.

European diplomats are set to discuss British entry to SAFE this coming days, along with a parallel proposal for Canada, which recently concluded its own security pact with the bloc.

Latest Involved Nations

The European Commission announced that 19 EU countries will receive SAFE loans.

• The Polish government is taking the largest loan of €43.7 billion.
• France and Hungary will each borrow €16.2bn.
• Romania is set to access €16.7bn.
• The Italian government will secure €14.9 billion.

These EU-supported loans reduce borrowing costs for several member states and can be used for supplying domestic forces or supporting Ukrainian defense efforts.