Auto Amazon Links: No products found. Blocked by captcha.
Efforts to enable greater participation of UK defence companies in the European Union’s €150 billion (£130 billion) defence loans programme have stalled due to disagreements over financial terms. The discussions focused on a contentious fee that would grant British firms enhanced access to loans provided under the initiative. Failure to reach a consensus means the extent to which UK businesses can contribute weapons or components to funded projects is now restricted.
Negotiations were underway with a looming Sunday deadline for EU member states to submit their initial bids for the loans expected to be distributed next year. The EU reportedly sought a multibillion-euro entry fee from UK companies wishing to secure a larger share of the funds, which would be backed by the European Commission. Although the UK acknowledged the need to pay some fee, it maintained a firm position against agreeing to terms that were not beneficial or cost-effective.
Nick Thomas-Symonds, the UK minister overseeing EU relations, expressed disappointment in a Friday statement regarding the impasse. He said, “Negotiations were carried out in good faith, but our position was always clear: we will only sign agreements that are in the national interest and provide value for money.” Meanwhile, the European Commission indicated that negotiations might restart at a later point, with a spokesperson noting that despite the intense and constructive talks, no deal could be completed “at this time.”
The EU’s Security Action for Europe (SAFE) programme, launched in March, aims to bolster member states’ military capabilities in response to Russia’s invasion of Ukraine. By borrowing up to €150 billion, the European Commission intends to facilitate long-term loans to encourage joint purchases of ammunition, artillery, and military drones among EU countries. Although an agreement made in May allows UK defence companies to participate in projects funded by this scheme, without a further accord, these companies can only supply up to 35% of the value of a finished product. The UK sought an improved deal before the loan application deadline, with 19 out of 27 EU nations having applied so far. Poland has been granted the largest allocation at €43.7 billion, with Romania, Hungary, and France receiving smaller sums.
Industry representatives, including Kevin Craven, chief executive of the British defence trade body ADS, described the breakdown as a “frustrating setback” but expressed hope for progress in the coming year. The talks’ collapse coincides with broader ongoing efforts to “reset” UK-EU relations following a summit earlier this year. Alongside the defence loan negotiations, the UK is attempting to secure agreements to ease customs checks on food after Brexit and to link with the EU’s carbon trading system. Discussions on a potential electricity trading deal are also expected to begin in early 2024, after EU states finalize their negotiation mandates next month. Additionally, Canada is engaged in talks to join the defence loans initiative, with hopes for agreement before the current deadline
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found. Blocked by captcha.