UK’s access to €150 billion EU defence fund stalled as France pushes limits

The United Kingdom could be granted access to the European Union’s new €150 billion defence initiative, SAFE (Security Action for Europe), by the end of 2025, but internal disagreements among EU members — especially France — threaten to complicate the process. 

EU foreign policy chief Kaja Kallas confirmed to Sky News that London is poised to join the bloc’s most ambitious defence financing program as an external partner, though the final terms are still under discussion.

SAFE, the EU’s largest defence funding mechanism to date, is designed to provide concessional loans to strengthen the military capabilities of both member states and strategic allies. As part of a broader post-Brexit partnership, the government of UK Prime Minister Keir Starmer has secured a framework allowing British participation in the fund, signalling a deeper re-engagement with European defence priorities.

However, Kallas warned that Brexit’s legacy remains an obstacle in some EU capitals. “Many feel that a country which chose to leave the European Union should not benefit from the same privileges as member states,” she said. According to The Times, France is advocating for restrictions that would limit the UK’s access to 85 per cent of the SAFE fund.

Responding to these tensions, Kallas noted that the focus would not be on rigid quotas but on capability-based contributions. “We must invest in the European defence industry, but cooperation with external partners like the UK remains important,” she said, emphasising that participation should be judged by strategic value, not just membership status.

For the British government, joining SAFE is not only about security. It’s also about economic opportunity. Downing Street has argued that access to the fund could support thousands of British jobs, tying defence cooperation directly to domestic growth.

This defence collaboration forms part of a sweeping new UK-EU trade agreement negotiated under Prime Minister Starmer’s leadership, five years after Brexit took effect. Among its key provisions, European fishing boats will retain access to British waters for an additional 12 years. In return, UK citizens will benefit from easier travel to the EU, including expanded access to European eGates, removal of pet travel health certificate requirements, and reduced red tape for food and drink trade.

British Chancellor Rachel Reeves, speaking to the BBC, hailed the broader economic progress made under Labour, positioning the UK as a global trade leader. “The UK is in a better place than any country in the world on trade,” Reeves said. “We’ve got the first deal and the best deal so far with the US, we’ve got the best deal with the EU for any country outside the EU, and we’ve got the best trade agreement with India.”

“Not only are these important in their own right,” she added, “but it also shows that Britain now is the place for investment and business, because we’ve got preferential deals with the biggest economies around the world.”

By Tamilla Hasanova