UK said to have rejected EU demand for €6.75bn to join key defence fund
The UK has reportedly declined a European Union demand for it to hand over nearly €6.75bn to join its flagship defence fund.
Talks between London and Brussels have broken down as the UK tries to access the Security Action for Europe (SAFE) programme amid fears it could harm Europe's attempts to deter Russia, according to a report by Bloomberg.
SAFE is the EU's new financial instrument constructed to give €150bn in competitively priced, long-maturity loans to member states that ask for financial assistance for investments in defence capabilities.
The European Commission suggested the UK must pay a fee of between €4bn and €6.5bn to join SAFE.
Alongside the joining fee, it was reported that the UK would be forced to pay an administration fee between €150m and €250m.
A senior British official told the news outlet that the prospect of sending over the fees to the EU was "completely unreasonable" and it was far above what the UK had expected to pay for access.
They confirmed that the UK was rejecting the terms of the deal, while discussions go on to decrease the amount of money the EU demands.
France was seen as the taking the hardest line position with regards to the financial demands.
The source said that people have suggested to European Commission President Ursula von der Leyen’s officials that stopping the UK being included in SAFE would "undermine European rearmament" and give Russia's president Vladimir Putin the idea that Europe is not fully behind protecting the continent from Moscow.
The opinions of other EU countries are mixed, with some countries choosing the British position that London needs to pay less, but certain countries want the UK to play by the rules and pay the requested amount.
The Ministry of Defence was approached, but declined to comment.
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