British arms companies are set to be locked out of a huge £125 billion EU defense fund—unless the Government agrees to sign a security pact with Brussels. The Security Action for Europe (SAFE) scheme, unveiled by the European Commission, is designed to boost Europe’s military capabilities amid increasing concerns over Russian aggression and future NATO commitments.
However, only EU-based defense firms or companies from countries that have signed specific defense agreements with the bloc will be allowed to benefit. That means UK, US, and Turkish defense firms are all currently excluded—despite Britain’s significant contributions to European security. The move is being seen as a win for France, which has long pushed for a “Buy European” approach to military investment, ensuring the bulk of the money stays within EU nations.
Under the scheme’s rules, at least 65% of the funds must be spent within the EU, Norway, or Ukraine. The remaining budget can only be used on products from third countries that have a security pact with Brussels—something Britain currently lacks, reported the Express.
EU leaders are pushing for more investment in Europe’s defense industries, spurred on by concerns about Russian expansionism and fears that Donald Trump could scale back US security guarantees for the continent if he returns to power.
The EU’s chief diplomat, Kaja Kallas, acknowledged that Britain’s exclusion from the fund was down to “different worries” from member states—widely seen as a reference to French pressure to keep the UK out. However, she also hinted that discussions were ongoing, stating:
“We are working on having this defense and security partnership with the UK.” Kallas recently met with Foreign Secretary David Lammy and Defence Secretary John Healey in London to discuss closer security cooperation, but the talks have reportedly stalled due to wider EU-UK tensions over fishing rights and migration.
The UK has been a key player in strengthening European defense, particularly through its leadership of the “coalition of the willing”—a group of nations working together to bolster security across the continent. But despite these efforts, Britain’s attempts to gain access to the fund have hit a roadblock.
With £125 billion on the table, the pressure is now on Keir Starmer’s Government to decide whether striking a security deal with Brussels is worth the political cost. Will the UK be forced to make wider concessions on trade and migration to get back into Europe’s military spending plans? Or will British defense firms be left out in the cold?
