UK to pay to join EU’s €150b defence fund: FT
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The news: The EU will make the UK pay a percentage of the value of any weapons bought from UK companies through a Brussels-led defence fund, the FT reports, citing EU diplomats.
The numbers: In May, UK PM Keir Starmer said the UK would join the EU’s new €150 billion ($268.9 billion) Security Action for Europe (Safe) project to boost military spending across the continent, as part of a “reset” of bilateral relations. London must compensate Brussels for being allowed to take part in the EU-backed scheme aimed at procuring drones, missile defence systems and other capabilities, two EU diplomats told the masthead.
The context: Safe is part of the bloc’s effort to mobilise €800 billion worth of defence spending by 2030 to counter a growing Russian threat and address calls by US President Donald Trump for the EU to increase its own security spending.
The exact amount that the UK will have to pay to access the fund is still under discussion, the diplomats said. The sources added that since British businesses would receive EU money to create jobs and expand capacity under the plan, the UK should be required to compensate the EU.
The same principle would apply to Canada and other countries that want their industry to access the money, sources said.
The source: FT
