SAFE: UK Refuses to Pay €6.75 Billion for Participation in EU Defense Fund

The United Kingdom has rejected the European Union’s request to contribute €6.75 billion to join a key European defense fund – SAFE.

According to Bloomberg, the European Commission proposed that London pay a contribution of between €4 billion and €6.5 billion to participate in the SAFE program, plus an additional administrative fee of €150–250 million.

The initiative is part of the EU’s efforts to strengthen its defense capabilities following Russia’s full-scale invasion of Ukraine.

The SAFE (Security Assistance for Europe) program aims to provide countries that apply with up to €150 billion in long-term loans to invest in their defense capacity.

One of the key conditions for participation in the program is a restriction on the origin of components. According to the rules, no more than 35% of component costs may come from products manufactured outside the European Economic Area or Ukraine.

Although the fund is primarily aimed at defense companies from EU member states, Brussels is also holding talks about access to it with non-EU countries, including the United Kingdom and Canada.

Meanwhile, Turkey and South Korea have also expressed interest in joining the program.

The European Union finances SAFE through borrowed funds, which are ultimately guaranteed by the EU budget. Member states contribute to the EU budget in proportion to their economies’ size.

The UK government believes that the proposed contribution is too high and significantly exceeds the amount the country had expected to pay for participation.

Senior officials have appealed to European Commission President Ursula von der Leyen, warning that blocking the United Kingdom’s accession to SAFE would undermine Europe’s rearmament efforts.

The coming weeks will be crucial for breaking the deadlock. By November 30, member states must submit specific projects for funding.