Thu, 18 Sep 2025

Thu, 18 Sep 2025 UK set for talks over access to EU defence loans

British ministers want UK-based companies to be able to take part in EU-funded military projects.

* The UK will begin talks with the EU over its companies' ability to contribute to military projects funded by EU defence loans.
* The EU's Security Action for Europe (SAFE) scheme aims to issue up to €150bn (£130bn) in loans to fund joint defence projects, including the purchase of kit such as ammunition and military drones.
* British ministers want to conclude a deal within weeks to allow UK-based firms to take part in contracts funded by the loans, with an entry fee for the UK to be agreed upon.
* The maximum contribution British firms can make to projects is currently capped at 35% of the total value, but this could be increased during talks.
* France is reportedly keen to limit non-EU companies' access to EU-backed loans, while the UK wants to "have a say" in programmes and retain intellectual property rights.
* Nineteen of the 27 EU countries have applied for the loans, with Poland allocated the greatest share of funding at €43.7bn.
* The UK government welcomes the opening of talks, stating that it is in the interests of both sides to "bring together our unique capabilities and expertise" to make Europe a safer place.
  >>