Talks over UK joining EU defence fund break down
Summary
Talks for the UK to join the EU's defense loans program have stopped due to disagreements about the fee. The deal would have allowed UK companies to access a larger portion of the €150 billion fund aimed at strengthening European defense. Without an agreement, UK firms face limits on their participation in EU-funded defense projects.Key Facts
- The EU defense fund is worth €150 billion and is meant to boost military spending across Europe.
- Discussions between the UK and the EU broke down over a fee the UK would need to pay to access more of the loans.
- The inability to reach an agreement means UK companies can only contribute up to 35% of the value of any EU-funded defense project.
- Negotiations faced a deadline as EU countries prepared to apply for the first round of loans.
- The European Commission indicated talks might resume in the future to reach a potential agreement.
- The SAFE scheme is part of a broader EU effort to strengthen military resources following the invasion of Ukraine by Russia.
- Nineteen EU countries have applied for the loans, with Poland set to receive the largest portion.
- Canada is also negotiating to allow its companies access to the program.
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