UK warns EU exclusion from SAFE defense fund is ‘self-defeating’ for regional security

British Defence Minister Al Carns has characterized the failure to reach an agreement regarding the United Kingdom’s participation in the European Union’s SAFE program as “self-defeating” for the broader security of the continent.

Speaking at an event hosted by Chatham House, Carns asserted that the UK remains “absolutely indispensable to European security.” He argued that blocking British access to the European defense fund was, in effect, a counterproductive measure that undermined collective stability.

Negotiations between Brussels and London over the Security Action for Europe (SAFE) initiative—a €150 billion “arms-for-loans” scheme—collapsed in November. The deadlock emerged after both parties failed to reach a consensus on the specific entry fees required for British participation.

Despite the lack of a formal agreement, Britain retains the ability to join collaborative procurement projects, provided that the program’s financial coverage does not exceed 35% of the total value of the weapons systems involved.

Britain sought a higher percentage in negotiations to benefit its substantial domestic arms industry.

The Minister for the Armed Forces predicted a shift in the current trajectory, stating, “You will see more work on this. I believe you will see much greater levels of cooperation.”

Prime Minister Keir Starmer echoed this sentiment during the Munich Security Conference, expressing a clear desire to deepen EU-UK cooperation regarding defense financing.

Chancellor of the Exchequer Rachel Reeves also addressed the matter in a recent speech.

However, the specific architecture of such cooperation remains opaque. The European Commission has yet to signal a transition into a second phase of the SAFE initiative, while the British Treasury maintains a skeptical outlook regarding the feasibility of joining a global defense bank.

London is currently lobbying Brussels over new EU procurement regulations that could impact British manufacturers. It remains uncertain whether the “Made in Europe” framework will eventually encompass the defense sector.