A European diplomat said the UK offered to pay ‘peanuts’ into the defence scheme.
Macron called for the UK to make high contributions to take part in the scheme (Image: Getty)
Britain has turned its back on the European Union’s rearmament scheme following demands from France. It is reported that the Government decided to quit Security Action for Europe (SAFE) after France called for the UK to pay £5.7billion.
The programme is set to provide up to €150 billion (£130 billion) in long-term loans to member states for defence spending and large-scale investments. Sir Keir Starmer previously said SAFE would benefit the UK’s defence industry, but has now pulled the plug on involvement. However, the UK will still be able to participate as a “third country”, meaning it will be competing against the likes of the United States for a limited number of defence contracts.
Nick Thomas-Symonds, minister for Europe, said: “Negotiations were carried out in good faith, but our position was always clear: we will only sign agreements that are in the national interest and provide value for money.
“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.”
Meanwhile, a European diplomat told The Times: “Britain really did not want to accept the logic of Safe and what they offered was really peanuts, unacceptable.”
SAFE is based on EU loans, and French President Emmanuel Macron insisted that the UK must make high contributions to participate in the scheme. A source claimed that the UK was not prepared to pay significantly into the programme and offered a figure lower than £1 billion.
Nick Thomas-Symonds said the UK will still be able to participate on third-country terms (Image: Getty)
Mr Thomas Symonds continued: “We continue to make strong progress on the historic UK-EU May agreement that supports jobs, bills, and borders. In the last fortnight, we have launched negotiations on a food and drink deal and energy deal that will bring down bills and slash red tape for business.”
It is reported that 19 of the 27 EU countries have applied for SAFE loans so far. The deadline for EU countries to apply for the first funding round is Sunday (November 30).
The money is expected to be issued early next year, with Poland set to receive the highest share with €43.7 billion. Meanwhile, Romania will receive €16.6 billion, with Hungary and France each given €16.2 billion.
