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The European Commission on Friday expressed confidence that a deal to allow the UK to take part in one of the EU’s flagship defence programmes will be concluded over the next two weeks with enough time for member states to adjust their rearmament plans.
Brussels and London have been engaged in talks since the summer to allow the UK to take part in the bloc’s SAFE programme aimed at boosting joint procurement of European-made weapon systems as the EU looks to rearm aggressively in response to Russia’s threat.
EU member states have until the end of November to submit their national plans detailing how they would spend the shares they have been allocated under the €150bn defence loan scheme.
Defence Commissioner Andrius Kubilius and Britain’s Defence Secretary, John Healey, were expected to discuss the ongoing negotiations during a phone call on Friday, a Commission spokesperson confirmed in response to a question by Euronews.
“Can we expect white smoke before 30 November? This is pretty much our hope. We’re engaged in deep and very efficient negotiations. We’re advancing at very quick speed,” Thomas Regnier said.
“And our objective is to find a solution and to have an agreement and to conclude the negotiations around mid-November,” he added.
SAFE includes a so-called European preference whereby at least two-thirds of any purchase financed through it has to be manufactured in the bloc.
As a third country, the UK’s contribution is currently limited to a maximum of 35%. But if the deal is struck, it will be treated like an EU member state with no cap. This already extends to Norway, Ukraine and Iceland.
The British government would also be able to take part in joint procurements with other European countries – at least three countries, including two EU member states, have to buy together to qualify for SAFE – although it will not be able to tap into the EU-issued loans.
One of the likely points still on the table for negotiators is the extent of the UK’s financial contribution.
But many member states are also likely to be glad of the UK’s inclusion in the programme as the country is a major exporter of defence products, with the EU accounting for a third of its total defence exports from 2019 to 2023.
Striking the deal before they have to submit their national plans would therefore allow member states to potentially adjust them to include British-made components before the deadline. The Commission has said it is looking to make the first disbursements to member states toward the end of the first quarter of next year at the latest.
Euronews has reached out to the British government for comment but had not received a reply by time of publication.
Australia and Canada have both also expressed interest in striking similar deals with the EU.