UK hopes for EU defense pact dimmed by limited access to weapons fund

The United Kingdom’s ambition to strike a landmark defense agreement with the European Union by May has weakened after being left out of direct access to the EU’s new €150 billion ($163.1 billion) weapons fund, prompting fresh concerns in London over post-Brexit cooperation.

EU weapons fund access restricted for non-members

This week, the European Union announced that direct access to the armament fund would initially be available only to member states and a small group of non-EU countries, excluding the U.K.

British officials, speaking on condition of anonymity, said the exclusion could complicate talks aimed at sealing a preliminary defense and security agreement during a planned “reset summit” in London on May 19.

Participation in the fund, which enables countries to use EU-backed loans to place orders with domestic and approved international defense firms, has become a central issue in the negotiations.

The U.K. has argued for a defense pact that is negotiated independently of broader Brexit-related concerns, such as fishing rights and energy cooperation.

Post-Brexit tensions resurface in defense talks

Officials in London fear that France and other EU countries now hold more leverage to tie the U.K.’s access to the weapons fund to unrelated post-Brexit issues.

The EU has maintained that a formal defense agreement is a prerequisite for full access to the fund. Chancellor of the Exchequer Rachel Reeves previously raised the issue with EU Commissioner Piotr Serafin in December.

Some in Brussels have supported the idea of including non-EU nations with shared defense interests, which could allow British companies like BAE Systems Plc and Rolls Royce Holdings to benefit from joint procurement plans.

However, France has expressed a preference for prioritizing European industry, citing the EU’s budgetary backing of the fund.

“A preference for the European industry was logical given that the fund is set to be guaranteed by the bloc’s own budget,” a senior French official said.

Starmer faces diplomatic setback

Prime Minister Keir Starmer has made rebuilding relations with the EU a foreign policy priority since taking office last year.

The current situation presents a challenge to that agenda, revealing the lingering effects of the UK’s 2016 decision to leave the EU.

In a visit to a BAE facility in Barrow-in-Furness on Thursday, Starmer said, “I’m very pleased that the EU is signaling their intent to spend more on defense. We’re continuing to have those discussions with them, because I do think there’s scope for more joint work.”

Talks between Starmer and French President Emmanuel Macron are expected in the coming days, with British officials believing Macron played a central role in the decision to exclude the U.K. from the weapons fund.

Transatlantic concerns heighten urgency

British officials noted that the exclusion is strategically shortsighted, particularly as U.S. President Donald Trump has called into question the future of the transatlantic alliance and opened direct talks with Russian President Vladimir Putin over Ukraine.

Two senior British officials expressed concern that the summit may yield limited progress, saying the May 19 meeting — intended to demonstrate the U.K.’s renewed commitment to European security — risks passing without meaningful outcomes.

Some EU officials have floated the idea of decoupling the defense talks from contentious Brexit issues like fisheries. “The U.K. is still optimistic that the security pact will eventually be agreed to, although it’s become less clear when that will happen,” a senior British official said.

Existing access rules, financial contributions

Currently, Norway and Iceland — both members of the EU’s single market — have direct access to the weapons fund.

The U.K., along with Canada and Türkiye, can contribute up to 35% of a defense product under the current rules. Greater participation would require a formal partnership agreement.

U.K. officials have also been in discussions regarding financial contributions to the fund.

German Ambassador to the U.K. Miguel Berger told Times Radio, “It’s also the question about the U.K. share because obviously, EU taxpayers’ money cannot go simply into British companies. But we can do it like in the research program Horizon, that the U.K. can become part of the investment and would pay its fair share in these programs.”

Starmer’s broader security vision

Starmer reiterated his belief in stronger European cooperation on defense in comments published by the New York Times, saying, “We need to think about defense and security in a more immediate way.”

He added that he is working to assemble a multinational military force — described as a “coalition of the willing”— to “protect Ukraine’s infrastructure following any peace agreement.

Commenting on the US position, Starmer said: “On a person-to-person basis, I think we have a good relationship.” However, he acknowledged that U.S. President Trump’s previous actions — including tariffs on British steel and criticism of Ukrainian President Volodymyr Zelenskyy — had caused “quite a degree of disorientation.”

According to Starmer’s office, the U.K. prime minister also held a joint call on Friday with EU, Icelandic, Norwegian, and Turkish leaders to discuss “the importance of ensuring military equipment outpaced the threats facing Europe.”