MNI: EU Officials Aim For SAFE Defence Deal This Sunday

European Union officials aim to reach a final agreement among member states on the EUR150 billion SAFE lending military-loan facility when they meet this weekend to stitch up a deal on UK's defence and security partnership, EU officials told MNI on Friday. 

The deal with the UK will allow its defence contractors to participate fully in defence projects financed under the cheap loan scheme, without the 35% limit which would normally apply to third country participation. 

The officials said that while SAFE can - and if necessary will - be finalised and begin lending operations as early as this summer with or without the UK, they regard the country's integration in the scheme as a clear "bonus". 

EU diplomats will meet this Sunday ahead of Monday's EU-UK summit in order to prepare the ground for an EU-UK agreement on defence, as well as on other contested issues, including youth mobility and fisheries.

Any SAFE agreement this weekend will be "in principle", officials said, and will be confirmed by EU diplomats next week if the summit goes to plan. (See MNI: Additional EU Defence-Financing Prospects Bleak)