The UK government has rejected a European Commission request for up to €6.75 billion ($7.8 billion) to participate in its flagship defense initiative, a decision that could strain post-Brexit relations under Prime Minister Keir Starmer and complicate Europe’s efforts to deter Russia. The Commission had proposed a participation fee between €4 billion and €6.5 billion for the Security Action for Europe program, or SAFE, along with an administrative charge of €150 million to €250 million, according to sources familiar with the private negotiations.
London emphasized that it will only agree to deals providing value to British industry, stating that nothing has been finalized and refusing to comment on ongoing discussions. British companies could benefit from SAFE access, a €150 billion fund that allows member states to invest in defense projects using equipment mainly sourced from EU countries, Ukraine, and EEA-EFTA nations.
SAFE is part of the EU’s push to strengthen defense readiness after Russia’s 2022 invasion of Ukraine, especially as concerns rise over potential reductions in US security commitments in Europe. While primarily aimed at EU defense firms, Brussels has discussed participation for non-EU nations including the UK, Canada, Turkey, and South Korea.
Funded through the EU’s borrowing capacity and guaranteed by the bloc’s budget, SAFE contributions are proportional to member states’ economies. A senior British official described the Commission’s demands as “unreasonable” and far above what the UK expected, noting that France is leading the push for the highest financial terms. Negotiations are ongoing, with London warning that excluding the UK could weaken European rearmament and send a signal to Russian President Vladimir Putin that Europe is not serious about countering aggression.
EU member states differ internally on the fee issue, with some supporting Britain’s call for lower payments and others insisting on strict adherence to the rules. The coming weeks are crucial, as member states must submit concrete projects for SAFE funding by November 30. The program aims to develop critical defense capabilities such as drones, cyber defenses, missiles, and a European air shield as the bloc races to establish a credible deterrent against Russia.
