Latest news with #SecurityandDefencePartnership
Euractiv
01-08-2025
- Business
- Euractiv
UK still waiting on terms for enlistment in EU's SAFE defence loans programme
The United Kingdom is eager for its defence giants to snag a share of Europe's rearmament spending splurge, but figuring out a deal is easier pledged than delivered. Despite optimistic signals this spring, negotiations have yet to start with London over it joining the EU's €150 billion Security Action for Europe (SAFE) lending scheme amid Brussels' summer slowdown and political wrangling. With EU capitals racing to submit spending plans by November, time is running out to strike a deal that ensures British firms aren't left watching from the sidelines. A deal allowing UK contractors to join SAFE could be struck within weeks, Foreign Secretary David Lammy said optimistically in May. By the end of July, however, it was clear that the UK would not receive a formal proposal for at least another month – narrowing the window for London to negotiate favourable terms for its companies. The clock is ticking. EU member states must submit their procurement wish lists by 30 November. If London wants British firms to be considered, it must align with that timeline. But that's without accounting for haggling among EU capitals over what kind of deal to offer London. The stumbling block: the agreement must strike a "fair balance", according to the legal text of SAFE, between the UK's contribution – both financial and industrial – to SAFE and what it stands to gain from the programme. What that balance means in practice has been left open to interpretation by both the European Commission and member states, three EU diplomats told Euractiv. Finding a way in Since signing a Security and Defence Partnership with the EU in the spring, the UK has been permitted to participate in SAFE-sponsored procurement deals. UK firms, however, are currently capped at making a maximum of 35% of the total value of any given project. A supplementary agreement would need to define both the precise eligibility criteria for UK firms and their suppliers, and the scale of London's financial contribution to the €150 billion pot – two politically sensitive issues. France, in line with tradition, is pushing to severely limit UK access to SAFE. Paris argues that EU-level defence schemes should primarily benefit companies based within the bloc. Germany and the Netherlands, among others, take a different view. They see buying from UK firms as a 'win-win', one diplomat said. EU countries, they argue, should be allowed to shop in the UK with SAFE loans. Defence contractors such as Rheinmetall have major production facilities set up in the UK. The Commission's method for calculating the UK's financial contribution is expected to be 'complex', another EU source noted. For one reason, there's no template to calculate the bill, an EU Commission official told Euractiv. An internal Commission document seen by Euractiv – in which the Commission pledges to keep countries in the loop during talks – underscores just how much influence member states will wield over the negotiations. Tight timeline, multiple hurdles Placing the Council at the centre of the process gives EU governments the discretion to treat third countries such as the UK, Canada, or Turkey differently, the EU official suggested. As of late July, multiple hurdles remain for the UK, according to the internal Commission document reviewed by Euractiv. The most immediate challenge is securing approval from all 27 EU member states – not just once, but repeatedly. A qualified majority is technically sufficient for the Commission to begin negotiations based on a proposed mandate. But in practice, defence industry files are almost always agreed by consensus, due to their politically sensitive nature. This makes the negotiations slower and more complex. The European Parliament will also weigh in, needing to give its consent to the final agreement before it returns to the Council – where another unanimous vote is likely to be required. (aw, jp)
Euractiv
30-07-2025
- Business
- Euractiv
Eighteen countries draw on EU's €150 billion SAFE defence loans scheme
More than half of EU countries have formally applied for a combined €127 billion in funding from the bloc's SAFE defence procurement programme, the European Commission announced on Wednesday. The list of 18 countries includes Belgium, Bulgaria, Czechia, Croatia, Cyprus, Estonia, France, Greece, Italy, Hungary, Spain, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia and Finland. This is three fewer than the "very conservative evaluation" that EU defence chief Andrius Kubilius gave Euractiv in an interview last week in which he claimed 20 would join the scheme, which is budgeted at €150 billion. Capitals had until midnight on Tuesday to express interest and only nine countries had sent their requests by midday. However, late joiners could still be considered, as the Tuesday milestone only marked an 'initial soft deadline', according to the Commission. The EU executive feared capitals would not use up all the money available, as the most recent estimates hovered between €75 billion and €100 billion. Earlier this month, EU defence and finance chiefs Andrius Kubilius and Valdis Dombrovskis sent a letter urging capitals to make use of the loans available. The programme's remaining €23 billion could be used up by other countries that have not yet expressed interest. Otherwise, capitals could issue new projects next year to use the remaining funds. Countries have until November to submit their proposals to Brussels breaking down what exactly they will do with the loans. Third countries could also join in to access procurement contracts, granted they have signed a security and defence partnership with Brussels. The United Kingdom is the most advanced country in the process, having signed a Security and Defence Partnership in May. But EU ambassadors were not planning on discussing how London could take part in SAFE in their last meeting on Wednesday, which means London will have to wait until September when the next session resumes. This would give the United Kingdom only two months before the November deadline. (jp)
Cision Canada
14-07-2025
- Business
- Cision Canada
Readout - Prime Minister Carney speaks with President of the European Commission Ursula von der Leyen
OTTAWA, ON, /CNW/ - Today, the Prime Minister, Mark Carney, spoke with the President of the European Commission, Ursula von der Leyen. The leaders focused on how to make Canada and the European Union (EU) stronger and more competitive faced with changing trade relationships and economic uncertainty. They discussed deepening their strategic partnership and boosting co-operation between Canada and the EU, as well as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). They reviewed the success of the recent EU-Canada Summit and the progress made since then. Canada and the EU are strengthening their partnership in key areas such as industrial policy, digital trade, critical raw materials, and clean technologies, in line with the commitments made at the Summit. The leaders also talked about new opportunities to work together on defence industrial procurement and manufacturing, as part of their new Security and Defence Partnership. Prime Minister Carney and President von der Leyen will stay in close contact and continue working closely together.
Canada News.Net
26-06-2025
- Business
- Canada News.Net
Canada, EU sign security, defence partnership
OTTAWA, June 23 (Xinhua) -- Canada and the European Union on Monday signed the Security and Defence Partnership in Brussels, Belgium, according to a news release on the official website of Canadian Prime Minister Mark Carney. The partnership will provide a framework for dialogue and co-operation in security and defence priorities of the two sides, the news release said. For Canada and the EU member states who are NATO Allies, this will also help deliver on capability targets more quickly and economically, it added. "Canada's new government has a mandate to diversify and strengthen international partnerships. Through increased co-operation in defence, trade, and commerce, we'll create greater prosperity, security, and stability on both sides of the Atlantic," Carney was quoted as saying. This new partnership is the intentional first step toward Canada's participation in Security Action for Europe (SAFE), an instrument of the ReArm Europe Plan/Readiness 2030, said the release.
Canada Standard
26-06-2025
- Business
- Canada Standard
Canada, EU sign security, defence partnership
OTTAWA, June 23 (Xinhua) -- Canada and the European Union on Monday signed the Security and Defence Partnership in Brussels, Belgium, according to a news release on the official website of Canadian Prime Minister Mark Carney. The partnership will provide a framework for dialogue and co-operation in security and defence priorities of the two sides, the news release said. For Canada and the EU member states who are NATO Allies, this will also help deliver on capability targets more quickly and economically, it added. "Canada's new government has a mandate to diversify and strengthen international partnerships. Through increased co-operation in defence, trade, and commerce, we'll create greater prosperity, security, and stability on both sides of the Atlantic," Carney was quoted as saying. This new partnership is the intentional first step toward Canada's participation in Security Action for Europe (SAFE), an instrument of the ReArm Europe Plan/Readiness 2030, said the release.
