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EU and UK tug-of-war over the price of participation in the EU defense fund

by AI | 12.Nov 2025 | Europe in brief AI

The European Commission and the United Kingdom continue to tussle over the UK’s participation in an important EU fund for defense investments, SAFE. The British government believes the price the EU is asking is too high.

British Prime Minister Keir Starmer and President of the European Commission Ursula von der Leyen in April in London. (Photo: Niklas HALLE'N / AFP)

BRUSSELS – London must pay between 4 to 6.5 billion euros to participate in SAFE, according to the Commission, based on sources that spoke to news agency Bloomberg. On top of that, there would be an additional 150 to 250 million in administrative costs. The UK reportedly finds that too much.

EU countries can borrow billions of euros cheaply from the EU through SAFE to invest in their defense. If the UK also participates, EU member states may spend a larger portion of that money on British goods. Good news for the British defense industry, one of the largest in Europe.

Countries like the Netherlands are urging the welcoming of the UK. This would facilitate the rearmament of Europe.

Time is running out for London and Brussels to reach an agreement. SAFE applications must be submitted by November 30.

(November 11, 2025)