France has successfully pushed to restrict the UK’s participation in the European Union’s €150 billion “Security Action for Europe” (SAFE) defence fund, limiting British involvement to just 15%. This move comes despite the UK’s efforts to secure broader access through a new security and defence pact, which includes a four-year agreement granting European vessels fishing rights in British waters.
The SAFE fund aims to enhance Europe’s military capabilities, including artillery, air defence, and drones, in response to decreasing U.S. security commitments. While Italy, Germany, and Poland support a more inclusive threshold of 35% for British bidders, France insists on restricting UK participation to ensure “strategic autonomy” for European defence industries.
This exclusion has significant implications for UK defence companies like BAE Systems and Babcock, which are deeply integrated into the defence industry of EU countries such as Italy and Sweden. The UK’s National Wealth Fund, which prioritizes investments in clean energy, advanced manufacturing, digital technologies, and transport, currently does not include the defence industry.
In response, Prime Minister Keir Starmer is working on creating a separate €600 billion rearmament bank to operate independently of the EU, aiming to ensure the UK’s defence industry remains competitive and integrated within Europe.
The UK’s exclusion from the SAFE fund underscores the ongoing tensions between France and the UK over defence and security issues, highlighting the complexities of post-Brexit European defence cooperation.
