"The UK had been pushing to join the EU's Security Action for Europe (Safe) fund, a low-interest loan scheme that is part of the EU's drive to boost defence spending by 800bn and rearm the continent, in response to the growing threat from Russia and cooling relations between Donald Trump's US and the EU. Entrance to the scheme would have enabled the British government to secure a bigger role for its defence firms."
"In September, France proposed a ceiling on the value of UK-produced military components in the fund. The UK and EU had been expected to sign a technical agreement on Safe after establishing an administrative fee from London. But after months of wrangling, and only days before the 30 November deadline for an agreement, sources said the two sides remained far apart on the financial contribution Britain would make,"
"Peter Ricketts, the veteran former diplomat who chairs the European affairs committee in the House of Lords, described a rumoured 6.5bn fee as so off the scale that it suggests some EU members don't want the UK in the scheme. The minister for EU relations, Nick Thomas-Symonds, said it was disappointing that talks had fallen through but insisted that the UK defence industry would still be able to participate in projects through Safe on third-country terms."
UK attempts to reset relations with the EU stalled when talks for UK entry into the EU's 150bn Safe defence fund collapsed. Safe is a low-interest loan scheme to support an EU drive to boost defence spending by 800bn and rearm the continent amid concerns about Russia and transatlantic strain. France proposed a ceiling on the value of UK-produced military components. Negotiators failed to agree on the financial contribution, with EU officials suggesting an entry fee reportedly up to 6bn and reports of a 6.5bn figure. The government said UK firms can still join projects on third-country terms and will sign agreements only in the national interest.
Read at www.theguardian.com
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