UK and EU Defence Fund Talks Collapse: What Went Wrong?

The UK has recently stepped back from joining the EU's defence fund, SAFE. This move is a significant blow to the efforts to strengthen defence ties between the UK and the EU after Brexit. The UK's Prime Minister, Keir Starmer, had earlier spoken about a "new era" in relations with the EU. He had highlighted agreements to improve defence and trade connections. One key part of this was the UK's attempt to join the EU's 150 billion euro fund for rearming Europe. However, talks have now broken down. The UK said it couldn't reach an agreement before the deadline. Nick Thomas-Symonds, the UK's minister for EU relations, said the UK would still take part in projects. But this would be under "third country" terms, meaning less involvement. He also said the UK would only sign agreements that benefit the country and offer good value. The EU's defence fund has rules. For example, no more than 35% of component costs can come from outside the EU or other participating countries. The EU said talks were intense but constructive. They also noted that the fund is open by design, meaning the UK could still join later. The EU expressed commitment to a strong UK-EU security partnership. The news didn't affect the shares of big UK defence companies like BAE Systems, Rolls-Royce, and Babcock. This suggests the market didn't see the breakdown as a major issue. The collapse of these talks raises questions about the future of UK-EU defence cooperation. It also highlights the challenges of balancing national interests with international partnerships.