Europe
EU, UK defense talks stall over major financial disagreements
Following a stalemate in talks between London and Brussels over financial issues, it seems unlikely that the European Commission will immediately reach an agreement regarding the participation of third parties in the EU’s defense credit program.
The EU is negotiating with the United Kingdom and Canada on its arms procurement initiative for the €150 billion European Security Action loans, which allows member states to receive low-interest loans to jointly purchase weapons systems.
Access to this program was declared a key objective by British Prime Minister Keir Starmer for “resetting” relations with the EU post-Brexit.
The Commission had set an informal deadline of Wednesday evening (November 19) to reach an agreement, but a source close to the talks indicated that a deal is not imminent.
Significant differences remain between the two sides regarding the level of financial contributions Britain must make and the minimum mandatory share of components produced within the EU. Senior British officials have signaled they will not join the program “at any cost.”
Britain and Canada will not be eligible for loans but are negotiating whether their industries can play a larger role in the supply of weapons systems.
Two EU officials involved in the talks with London, who wished to remain anonymous, described the atmosphere as tense.
Meanwhile, a Commission spokesperson attempted to de-escalate the situation, stating, “We welcome the United Kingdom’s interest in negotiating further participation in SAFE. The Commission remains open to negotiating with the United Kingdom, but the contribution must be proportional to the benefits the United Kingdom would gain from its participation.”
According to three diplomats close to the negotiations, Brussels is demanding a contribution of between €4.5 billion and €6.5 billion, while the United Kingdom has proposed a much lower figure of €200 million to €300 million. Some officials noted that the UK’s initial offer was even lower, in the tens of millions of euros.
The diplomats stated that negotiations with Canada have been much smoother.
France is among the countries pushing to limit the United Kingdom’s participation, demanding that only 50% of components can be produced outside the EU.
However, other countries, such as Germany and the Netherlands, are receptive to the United Kingdom joining the program.
At a press conference on Wednesday, UK Defence Secretary John Healey said, “We have always been clear that we want to pay a fair share of the costs of this program, but any deal must represent value for money for the British taxpayer.”
Sandro Gozi, Chair of the EU-UK Parliamentary Partnership Assembly and a Member of the European Parliament, told POLITICO, “We want to reserve a high percentage of the projects for the EU defense industry,” adding that this was to enhance strategic autonomy, “not to put other partners in a difficult position.”
Hopes are high that the United Kingdom will reach an agreement with the EU by the end of November, but officials on both sides warn that the outcome may be more limited than anticipated when Starmer and European Commission President Ursula von der Leyen exchanged warm words in May.
A British official stated that London’s view is that the contribution should reflect administrative costs and the expense of guaranteeing the loans, adding that “it is not reasonable to simply pay the EU for the privilege of access.”
They emphasize that the United Kingdom is adopting a “pragmatic approach” and that the EU-UK relationship will exist alongside bilateral partnerships with member states as “valuable pieces of the puzzle” in strengthening European defense.
Under the current rules of SAFE, components from non-member countries can constitute up to 35% of a product to qualify for loans. Increasing this ratio to 50% or more would enable greater participation from the United Kingdom, which has one of Europe’s largest and most advanced defense industries.
Europe
EU states hold talks with Taliban in Brussels on Afghan returns
Representatives from 15 European Union member states met with the Taliban in Brussels on June 23 to discuss the return of Afghan nationals to Afghanistan.
A European Commission spokesperson said on Tuesday that the meeting was co-chaired with Sweden. Belgium and the Netherlands also took part.
The Commission stressed that the discussions primarily focused on the return of Afghan citizens with criminal records or those considered security threats.
Talks covered a wide range of issues, including the identification of returnees, the issuance of travel documents and procedures related to their repatriation.
However, Johannes Luchner, a senior European Commission official who travelled to Kabul in January, had previously indicated that the scope could extend beyond convicted individuals.
Addressing European lawmakers at the end of January, he said: “Our primary concern is the return of criminals, but the number of non-criminal Afghans who have received return orders is also increasing.”
Another EU source has now expressed a similar view. Speaking to EUobserver on Tuesday ahead of the meeting, the source said the discussions would also cover the return of asylum seekers whose applications had been rejected.
Earlier in the day, the Commission declined to provide details about the meeting.
As a result, questions remained unanswered regarding who covered the Taliban delegation’s travel expenses, where the meeting would take place, whether women would participate and what the Taliban expected in return for assisting the EU with deportations of Afghan nationals.
The EU and its member states have not recognised the Taliban government since it returned to power five years ago.
Brussels defended its decision to maintain limited contacts with Afghanistan’s “de facto authorities,” arguing that such engagement is necessary to facilitate the deportation of rejected asylum seekers who have committed crimes or are considered dangerous.
A European Commission spokesperson said officials from the Commission and 15 EU member states attended the Brussels meeting, which followed a previous gathering held in Kabul in January.
“The Commission services and Sweden today co-chaired a technical-level meeting in Brussels together with technical-level representatives of Afghanistan’s de facto authorities responsible for return and readmission matters,” the spokesperson said.
A spokesperson for Afghanistan’s Foreign Ministry said the agenda was broader and included the possibility of a future consular presence in the EU, the resumption of consular services for Afghans living there and “the need for confidence-building measures.”
Spokesperson Abdul Qahar Balkhi added that the meeting raised hopes of creating “positive momentum to safeguard the consular rights of Afghans residing abroad.”
According to a European Commission letter addressed to Balkhi and reviewed by Reuters, the discussions would focus on “the return and readmission of Afghan nationals without a right to reside in the EU.”
Europe
EU defence chief calls for integration of Ukraine’s military into European defence architecture
The European Union’s Defence Commissioner, Andrius Kubilius, said the bloc should integrate Ukraine into a future European defence union, speaking at the European Defence and Security Summit in Brussels.
According to remarks reported by Reuters, Kubilius said: “It would be difficult to make sense of things if we did not regard the integration of Ukraine’s armed forces into our defence architecture in Europe as a vital issue.”
Kubilius stressed that Ukraine currently holds a dominant position on the battlefield thanks to the transformation of its military doctrine.
Calling for the integration of Europe’s defence industry and Ukraine’s manufacturing facilities into a single military structure, Kubilius said Ukraine should be fully integrated into the EU’s military market.
He added that the European Commission could present a detailed analysis of the defence market and initial proposals for next steps as early as next week.
At a later stage, the commissioner said, the Commission would propose changes to defence procurement rules and other market regulations.
Kubilius also outlined a strategic objective for the European Union.
He argued that EU member states should spend around €7 trillion on arms production over the next decade in order to surpass Russia in military strength and weapons stockpiles. According to Kubilius, such spending would be consistent with commitments under NATO to raise defence budgets to 5% of gross domestic product.
Urging Europeans to be prepared to bear the cost, Kubilius described it as “the price of peace.”
At the same time, he suggested moving away from the production of highly sophisticated weapons that are difficult to manufacture in large quantities. Instead, citing the example of drones used in Ukraine, he called for a focus on producing “enormous quantities of satisfactory weapons.”
The EU Defence Commissioner also underscored the need to integrate Ukraine’s innovative defence industry into Europe’s broader defence and technological base.
Europe
Hungary blocks joint EU letter backing Ukraine and Moldova accession process
Hungary has refused to endorse a joint letter intended to be sent on behalf of all 27 European Union member states to the European Council and the European Commission in support of Ukraine’s and Moldova’s accession to the bloc.
According to Politico, citing sources familiar with the matter, the letter is required for Kyiv’s and Chisinau’s membership applications to advance to the next stage of the accession process.
The sources said Hungary was the only member state that declined to back the document. Because approval requires the consent of all 27 member states, the issue is expected to be revisited next week.
Hungary, which previously blocked Ukraine’s accession negotiations for an extended period, was led at the time by Prime Minister Viktor Orban. His successor, Prime Minister Peter Magyar, has not opposed the launch of the negotiation process but has insisted on removing the phrase “as soon as possible” from the draft letter’s reference to Ukraine’s accession.
Magyar said Hungary does not support opening all negotiating chapters simultaneously in an effort to accelerate Ukraine’s membership bid.
Explaining the government’s position, he said: “Partly because the ink on the documents relating to the first chapter has barely dried, and partly because this would send the wrong message to Western Balkan countries such as Serbia, Albania, Montenegro and North Macedonia, which have been working for years to become members of the European Union.”
The European Union formally opened the first chapter of accession negotiations with Ukraine and Moldova in June. The process was launched during a ceremony in Luxembourg attended by the foreign ministers of member states and is divided into six thematic clusters covering different areas of legislation and policy.
The opening of the first cluster, which covers core issues including the rule of law, the functioning of democratic institutions and public administration, marks the transition from the preparatory phase to practical work on meeting accession requirements.
The EU’s ambassador to Ukraine, Katarina Mathernova, has said Kyiv could join the bloc by 2030, although the final timeline will depend on how quickly the Ukrainian authorities complete the required legal and institutional reforms.
Mathernova also said she hoped all 33 negotiating chapters could be opened by the end of the summer.
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