EU–UK Negotiations Over SAFE Defense Purchases Miss Deadline

Negotiations between the European Commission and the UK on London's participation in the EU's SAFE program are being delayed as the parties cannot agree on the terms of financing.

The Gaze reports on it, referring to Politico.

The European Commission had planned to conclude negotiations by the end of the week so that member states could factor in greater participation by the UK and Canada in their national defense spending plans under the SAFE program that provides “loans in exchange for weapons.” The deadline for capitals is November 30, but London considers it non-binding and plans to negotiate at its own pace.

The Commission has reduced the UK's initial contribution from €4.5-6.5 billion to €2 billion, but London is only willing to allocate tens of millions, which is significantly less than expected and creates an imbalance compared to Canada, which is likely to pay several hundred million for access to SAFE.

As a result, negotiations may move to a higher political level, likely at the G20 summit in Johannesburg, where British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen are expected to meet to find a compromise and determine the terms of British participation in joint European arms purchases.

Adopted by the Council of the European Union on 27 May 2025, the SAFE (Security Action for Europe) program is a new EU financial instrument designed to accelerate defense readiness among member states. It provides urgent and substantial support for European defense industries, focusing on closing critical capability gaps and ensuring timely access to essential military equipment.

SAFE offers EU member states long-term loans of up to €150 billion at competitive rates to finance priority defense projects. To maximize efficiency and reduce fragmentation, projects are generally based on joint procurement involving at least one member state accessing SAFE support, alongside other EU states, Ukraine, or EEA/EFTA countries. In certain urgent cases, individual member states may also make purchases independently to ensure timely delivery of critical assets.

The initiative also opens opportunities for trusted partners, including Ukraine, candidate countries, and security partners such as Albania, Canada, Japan, Moldova, North Macedonia, Norway, South Korea, and the UK, to participate in joint procurement and production projects. While only EU member states can receive SAFE loans, partners can collaborate fully on eligible projects.

As The Gaze reported earlier, 19 EU member states have already applied for SAFE loans totaling €150 billion, fully subscribing to the program’s allocated funds.

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