Overview
- The UK confirmed negotiations to join the EU’s €150bn SAFE defence loans programme ended without agreement, calling the outcome disappointing.
- British firms can still bid as a third country but face a default cap of 35% of any contract’s value after the UK failed to secure a higher threshold.
- EU demands for an upfront contribution were widely reported between €2bn and €6.5bn, while the UK offered much less, with one report citing significantly under £1bn.
- Both sides explored alternative payment options, including a pay‑as‑you‑go approach tied to project participation, but the talks stalled before the EU’s Sunday bid deadline.
- The collapse is framed as a setback for Prime Minister Keir Starmer’s EU reset as France pushed a tougher line, though officials say other strands such as energy and food-and-drink talks continue.