MNI: About 10 EU States Want UK Access To SAFE Defence Loans

Around 10 European Union member states want to allow the UK and its defence industries full participation in the EUR150 billion SAFE lending facility for defence but French insistence on expanded fishing rights in British waters remains an obstacle to agreement, sources close to talks told MNI. 

Such a move would give the UK similar status to that of Ukraine, which participates in SAFE under the proposal made by the European Commission in its White Paper on Defence published on March 19. It would mean there would be no need for the UK to agree a defence-security partnership agreement with the EU in order to participate.   

"There are several delegations calling for the participation of at least the UK and Canada - or non-EU but like-minded countries,” an EU official close to discussions said.

The change to the SAFE agreement would allow UK defence industries to collaborate in projects financed by EU state loans from the new facility.

"Around 10 countries are pro-actively for it. France would be the biggest obstacle.” (See MNI: EU Defence Finance Not As Coordinated As Hoped - Official)

The 10 include Poland, other frontline states as well as the Baltic states, Germany, Finland, Sweden and Denmark. 

"All the countries which are UK friendly," one official said. "Fish are the main reason for not signing a security agreement.”

Several diplomats said a high-level deal between the UK and France may prove the only way to overcome France's veto.  EU diplomats will meet again next Wednesday to try to agree a compromise text as they work to try and get SAFE up and running as fast as possible.

Officials are aiming to conclude their talks on the SAFE text before May, clearing the way for actual lending operations to begin by the summer.