France has proposed placing a 50% ceiling on the value of British-made components in projects financed under the EU’s €150bn Security Action for Europe (Safe) defence fund. The move comes as negotiations are set to begin over the UK’s formal entry into the scheme, which aims to strengthen Europe’s defence industry and supply chains.
The proposal reflects France’s push for greater European defence autonomy and reduced reliance on non-EU partners. However, a majority of EU member states reportedly oppose strict limits on UK participation, arguing that flexibility is needed in defence procurement.
The UK signed a defence and security partnership with the EU earlier this year, opening the door for greater involvement by British firms. London now seeks to secure a technical agreement and negotiate the entry fee, allowing its defence companies to contribute more widely to projects ranging from drones and ammunition to precision strike systems. Talks between the UK and the European Commission are expected to continue in the coming weeks.