The European Commission released details of its planned €150 bn (£126 bn) fund for governments as part of its massive rearmament schemes, but it would only be open to defence companies within the 27-nation EU and from those from countries that have signed defence agreements with the EU.
In what would be a major boost to Keir Starmer’s Brexit reset the Commission’s separate white paper on defence readiness, describes the UK as “an essential European ally with which cooperation on security and defence should be enhanced in mutual interest, starting with a potential Security and Defence partnership”.
Keir Starmer has made resetting relations with the EU a key priority and a defence pact is believed to be the first step towards that – something given added urgency by US President Trump’s disengagement from Nato and the war in Ukraine.
The EU’s defence plans are designed to build the EU’s military-industrial complex as the bloc aims to counter Russian aggression, while also reducing dependence on US arms and equipment.
The new Security Action for Europe (SAFE) plan allows EU countries to secure loans from the EU budget to spend on weapons, but the Buy European clause, championed by France, says that 65 per cent of the cost of weapons must be spent in either the EU, Ukraine, or EFTA’s Norway, Switzerland, Iceland and Liechtenstein.
The measure still needs to be approved by a majority of EU member states, and French calls for strict Buy European clauses – seen by some as an effort to privilege French arms dealers – will face resistance from other countries like Germany, the Netherlands, and the Baltic and Nordic states.
Defence pact hopes
However, Kallas – who met Foreign Secretary David Lammy and Defence Secretary John Healey in London this week – indicated that it could be overcome if and when British clinches its long-awaited security pact with the bloc.
She was echoed by UK officials who said they still hoped British firms like BAE Systems would be included in the plans after EU governments scrutinise it, reflecting the leading role taken by Prime Minister Sir Keir Starmer to rally European countries in support of Ukraine in recent weeks.
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Read MoreAhead of the meeting foreign secretary David Lammy said: “A strong and secure Britain is a foundation of our Plan for Change. This cannot be achieved without strengthening our shared European security and coming together with our partners to ensure a just and lasting peace in Ukraine.”
While the existence of such kill switches is debated, there are clauses in many arms contacts that restrict their use – for example, the US Patriot missile defence platform limits on where they can be used. Kallas said the war in Ukraine showed that allies needed to provide defensive weapons without any restrictive conditions. “In a crisis, your military really needs to have free hands,” she said.
The moves come as military chiefs from 30 nations are due to meet in the UK on Thursday as members of the Coalition of the Willing to discuss the logistics of peace keeping in Ukraine if a peace deal with Russia can be reached.
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