Setback for Keir Starmer in EU Defence Cooperation Negotiations

Keir Starmer's recent efforts to reset the United Kingdom's relations with the European Union have encountered a significant hurdle as negotiations for the UK to join the EU's flagship €150 billion Defence Fund have collapsed. This fund is a key component of the EU's strategy to enhance defence spending by €800 billion in response to the escalating threats from Russia and the deteriorating relations between the United States under Donald Trump and the EU. The UK had been advocating for its inclusion in the EU's Security Action for Europe (SAFE) fund, a low-interest loan program designed to increase military spending across the continent. Joining this scheme would have allowed the UK government to secure a stronger position for its defence industries within the EU framework. In September, however, France proposed imposing a cap on the value of military components produced in the UK, complicating negotiations considerably. These talks were expected to culminate in a technical agreement regarding the SAFE fund shortly after establishing a manageable administrative fee from London. Yet, as the deadline of November 30 approached, sources indicated that both sides remained at an impasse regarding the UK’s financial contribution. Reports from Bloomberg highlighted that EU officials suggested an entry fee as high as €6 billion, a stark contrast to the administrative fee initially anticipated by the UK government. Veteran diplomat and chair of the European Affairs Committee in the House of Lords, Peter Ricketts, characterized rumors of a €6.5 billion fee as exorbitantly high, indicating that certain EU member states may be opposed to the UK joining the fund. Nick Thomas-Symonds, the UK Minister for EU Relations, expressed disappointment over the failed negotiations but affirmed that the UK defence industry could still engage with projects through SAFE on third-country terms. He noted, "While it is disappointing that we have not been able to conclude discussions on UK participation in the first round of SAFE, the UK defence industry will still be able to participate in projects through SAFE on third-country terms." Both sides had seemingly opened the door to greater collaboration in May when Starmer and European Commission President Ursula von der Leyen signed a security and defence partnership, which allows the UK to contribute up to 35% of the value of components in SAFE-funded projects. However, this partnership did not guarantee the kind of participation Starmer's government seeks. As recently as last week, Prime Minister Starmer expressed optimism about achieving a consensus through "quiet diplomacy," stating, "Negotiations are going on in the usual way and they will continue. I hope we can find an acceptable solution, but my strong view is that these things are better done quietly through diplomacy rather than exchanging views through the media." Nevertheless, the situation appeared increasingly precarious as Defence Secretary John Healey conveyed the UK's willingness to withdraw from negotiations if they became prohibitive. He had stated to i newspaper that the UK was not prepared to commit at an unreasonable cost. Symonds attempted to mitigate the impact of the negotiations' collapse, emphasizing the UK’s ongoing commitments to European security. He said, "From leading the Coalition of the Willing for Ukraine to strengthening our relationships with allies, the UK is stepping up on European security in the face of rising threats and remains committed to collaborating with our allies and partners. In the last year alone, we have established defence agreements across Europe and will continue this close cooperation." Despite the setback in defence negotiations, Symonds highlighted that the UK and EU are making considerable progress on their historic May agreement, which is designed to bolster jobs, security, and borders. The resolution of both diplomatic and defence collaboration will be vital for the UK as it continues to navigate its post-Brexit relationships with Europe. Related Sources: • Source 1 • Source 2