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EU–UK Reset Stalls on Payments as Leaders Set SPS and ETS Talks for Next Week

Leaders scheduled SPS and ETS negotiations for next week, leaving the EU defence fund entry fee unresolved.

Keir Starmer and President of the European Commission, Ursula von der Leyen at the UK-EU summit in London in May. Current talks have hit a snag over EU demands to balance contributions to its defence fund and the benefits the UK can get from it (Photo: Carl Court/Getty)
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Prime Minister Sir Keir Starmer welcomes European Commission President Ursula von der Leyen to a bilateral meeting in 10 Downing Street. Photo: PA Images / Alamy
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Overview

  • Brussels is pressing for explicit British contributions in exchange for single‑market‑like access and programme participation, with a reported €4–6.5 billion opening price for UK entry to the €150 billion SAFE defence scheme.
  • Downing Street says nothing is agreed and insists any deal must offer value for money, with UK sources indicating London could walk away from SAFE if terms fall short.
  • EU ambassadors remain split over how to handle UK payments, with France and allies pushing for swift contributions and Germany, the Netherlands and others urging a more cautious mandate.
  • Keir Starmer and Ursula von der Leyen held a call that confirmed formal negotiations on agri‑food rules (SPS) and linking emissions trading systems will start next week after a planned COP30 meeting did not happen for scheduling reasons.
  • A Nov. 30 bidding window for SAFE adds time pressure as defence firms eye contracts, while a House of Lords report says the broader reset has yielded limited concrete progress so far.