Latest news with #SAFE
Daily Mail
a day ago
- Business
- Daily Mail
Britain faces having to pay billions to EU in order for UK firms to access bloc's new €150bn defence fund
Britain will have to pay the EU a fee for any weapons bought from UK firms via the bloc's new €150 billion defence fund, it is reported. Sir Keir Starmer boasted in May how his Brexit 'reset' deal with the EU would pave the way for UK defence firms to access the Security Action for Europe (SAFE) fund. The Prime Minister said British participation in the fund would support thousands of jobs and boost economic growth. But Sir Keir was also warned there would be a 'pay to play' element for British access to SAFE, following French demands for a UK financial contribution. According to the Financial Times, this will see Britain having to pay the EU a percentage of the value of any weapons bought from UK companies via SAFE. The newspaper reported the exact figure Britain will have to pay to access the fund is still under discussion by EU member states. They are finalising their position on the deal with the UK, which is expected to be published later this week. Brussels is set to argue that because UK firms would receive EU money to create jobs and expand capacity under the scheme, London should recompense the bloc. An EU diplomat said: 'What was written in the SAFE regulation is that there shall be a fair balance as regards the contributions and the benefits.' Another diplomat revealed how France is pushing for a high UK contribution but other countries, led by Germany, want to ensure the UK is not dissuaded from joining. SAFE was set up by Brussels amid the threat posed by Russia and following threats by US President Donald Trump to scrap American security guarantees for Europe. The multi-billion fund will allow EU member states to take out loans for weapons from funds raised against the EU budget. There are strict rules on where arms can be purchased from, with initial fears that British defence firms would be excluded from the fund. These include a 'buy European' clause that means the fund can only be used to purchase arms from EU-linked countries or Ukraine. Brussels officials previously outlined how the fund would only consider buying British arms if the UK struck a new security and defence partnership with the EU. Sir Keir agreed such a partnership with the EU as part of his Brexit 'reset' in May. In order for UK defence products to qualify, the value of their components from members of SAFE must be at least 65 per cent. Other restrictions relate to the purchase of complex weapons systems where non-EU countries hold 'design authority'. Concerns were recently expressed in Germany that the US has the power to shut off F-35 fighter jets, which are widely used across Europe. But the US denied the existence of a 'kill switch'. A Government spokesperson said: 'We won't preempt our discussions with the EU. 'It is in all our interests for the UK and EU to bring together our unique capabilities and expertise to make Europe a safer, more secure, and more prosperous place. 'That is why we agreed a landmark Security and Defence Partnership, enhancing our security and defence cooperation and delivering for citizens across the continent.'
Reuters
a day ago
- Business
- Reuters
China has conditions to maintain yuan stability, FX regulator says
BEIJING, July 22 (Reuters) - China has the conditions to keep the yuan stable, the country's foreign exchange regulator said on Tuesday, even as trade relations with Washington remain uncertain and deflationary pressures continue to weigh on the domestic economy. Li Bin, the deputy head of the State Administration of Foreign Exchange (SAFE), said that the yuan has been trading at reasonable and balanced levels so far this year and had the conditions to remain stable. "From a policy perspective, China has accumulated rich experiences in counter-cyclical adjustments in the foreign exchange market and has ample reserves of policy tools," Li said. He added that the regulator's ability to "prevent and resolve external shocks and risks" had been enhanced. "We have the confidence and ability to continue to maintain the stable operation of the foreign exchange market," he said. Overseas investors in general have increased their net holdings of onshore equities and bonds in the second quarter of this year, Li told a press conference in Beijing. He added that supply and demand in the foreign exchange market were basically stable. China's yuan has strengthened about 1.7% against the U.S. dollar so far this year. Chinese businesses and investors expect the yuan to remain steady in the near term, a rise in currency swaps and growing foreign exchange deposits suggest they are expecting the yuan to depreciate as U.S. trade tensions drag on. China reported slightly better-than-expected second-quarter gross domestic product (GDP) data last week, though analysts warn that weak demand at home and rising global trade risks will ramp up pressure on Beijing to roll out more stimulus. The 90-day tariff truce agreed by Washington and Beijing during trade talks in Switzerland is due to end on August 12. Official data on Tuesday showed that foreign investors sold China's onshore yuan bonds for the second consecutive month in June.
Russia Today
a day ago
- Business
- Russia Today
Zelensky complains Western backers too slow to send money
Ukraine's Vladimir Zelensky has complained that his country has yet to see any benefits from NATO's plan to ramp up military spending. At a recent summit in The Hague, most members of the US-led bloc committed to raising security-related expenditure to 5% of GDP. Kiev seeks to benefit from the surge, even as reluctance to commit to long-term funding of Ukraine is dwindling in the West. 'The EU has opened access to €150 billion. Member states can assume obligations to draw these funds and then transfer them to Ukraine,' Zelensky told Ukrainian ambassadors on Monday, according to remarks released by his office. 'Ten countries have already expressed readiness to take this money, but we have not yet seen the result – that they have actually taken it and transferred it to us.' Zelensky appeared to be referring to the EU's Security Action for Europe (SAFE), a €150 billion ($175 billion) borrowing instrument introduced in May to support the European Commission's efforts for rapid militarization across the bloc. SAFE offers member states and select partner countries access to low-interest loans for national defense efforts or joint weapons procurement. The program is part of a broader EU strategy to borrow €800 billion for military readiness investment. It is not designed to provide direct financial aid. EU officials say the bloc is preparing for the possibility of Russian aggression – a claim Moscow has rejected as fearmongering based on false assumptions. This month, the US offered to sell weapons to Ukraine, with other NATO nations covering the costs. While the proposal was hailed by Brussels, some major EU economies, including France and Italy, have reportedly opted out citing financial limitations or political reasons. Brussels' handling of the Ukraine conflict has exposed growing divisions within the EU. Hungarian Prime Minister Viktor Orban, a longtime critic of the pro-Kiev approach, denounced the European Commission's draft seven-year budget, saying it appears primarily tailored to Ukraine's needs. 'This budget would destroy the European Union,' Orban said last week, predicting that the Commission will likely have to withdraw or significantly revise the proposal within a year.
Reuters
a day ago
- Business
- Reuters
China does not see 'irrational' trading activities, yuan stable, FX regulator says
BEIJING, July 22 (Reuters) - China's foreign exchange regulator said on Tuesday that it has not seen "irrational" trading activities for now. Li Bin, the deputy head of the State Administration of Foreign Exchange (SAFE), said that the yuan has been trading basically stable at reasonable and balanced levels so far this year. Overseas investors in general have increased their net holdings of onshore equities and bonds in the second quarter of this year, Li told a press conference in Beijing. He added that supply and demand in the foreign exchange market are basically stable.
Indian Express
4 days ago
- Politics
- Indian Express
App with SOS button, code for professors: Facing heat for student's death, Odisha govt's plan to keep women safe
In the wake of a student's death in Balasore after she accused a professor of sexual harassment, the Odisha government on Saturday announced a new initiative called Shaktishree, which aims to ensure a safe academic environment in colleges and universities in the state. Odisha Chief Minister Mohan Charan Majhi, who announced the initiative, said it would be implemented in 16 state-run universities and 730 government and aided colleges. The announcement came at a time when the Majhi government has been under fire from various quarters over the death of a college student, who set herself on fire after her complaints alleging sexual harassment by a professor were ignored. The incident put a spotlight on the safety of women in the state and triggered nationwide outrage. Under the new initiative, every college and university will have an 'empowerment cell', which will be managed by women students. 'The cell will ensure training of female students in fields like self-defence, legal rights and mental health. It will also create awareness on various aspects of digital safety,' said Chief Minister Majhi. A dedicated mobile app will also be launched to help women students raise their complaints with internal complaint committees and connect to mental health experts in case of stress and anxiety. It will also have facilities like an SOS button in case of emergency. The state government has also decided to come up with a code of conduct for university and college professors. Professors will now have to take an online training module with focus on women's safety, gender equality and professional ethics, officials said. A campaign, called SAFE (Shaktishree Actions for Female Empowerment), will be launched in colleges, under which self-defence training will be organised twice a year. It will also include workshops on women's safety and rights. The Chief Minister said this move would boost the confidence of women students. State-run colleges and universities will now have to submit a campus safety report, highlighting the steps taken by authorities to ensure the safety of students. Under the Shaktishree initiative, the Chief Minister said an adequate number of CCTVs would also be installed in all colleges and universities, and that a control room would be set up for monitoring.
