By Esther Webber,Jacopo Barigazzi
Publication Date: 2025-11-20 03:28:00
UK Defense Secretary John Healey told reporters at a press conference on Wednesday: “We have always been clear that, while we were willing to pay a fair share of the costs of this programme, any deal had to offer good value for money for our British taxpayers.”
Sandro Gozi, a member of the European Parliament who chairs the EU-UK Parliamentary Association Assembly, confirmed to POLITICO that “we want to reserve high percentages” of projects for EU defense industries, adding that this is “not to put other partners in an uncomfortable position” but to develop strategic autonomy.
Hopes remain high that the UK will reach a deal with the EU before the end of November, but officials on both sides warn that the outcome may be more limited than first envisaged by Starmer and Commission President Ursula von der Leyen. They exchanged warm words in May.
A UK official said London’s view was that the sum should reflect administrative costs and the cost of guaranteeing the loans, adding that “it was unreasonable to pay the EU just for the privilege of access.”
They stressed that the UK was taking “a pragmatic approach” and that the EU-UK relationship would sit alongside bilateral partnerships with member states as “valuable pieces of the jigsaw” to strengthen Europe’s defence.
Under current SAFE rules, components from non-member countries can account for 35 percent of a product to qualify for loans. Expanding that figure to 50 percent or more would allow greater participation by the United Kingdom, which has one of the largest and most advanced defense industries in Europe.
Jon Stone contributed to this report.