Finance
UK wants closer EU defence ties with potential bid to join new SAFE fund
Published by Global Banking & Finance Review®
Posted on February 1, 2026
3 min readLast updated: February 1, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 1, 2026
3 min readLast updated: February 1, 2026
UK considers joining EU's new SAFE fund to enhance defence ties. PM Starmer seeks stronger EU relations amid security concerns.
BEIJING, Feb 1 (Reuters) - British Prime Minister Keir Starmer said his government will consider applying to join a second possible multi-billion-euro European Union fund for defence projects as his ministers prepare for talks with EU counterparts this week.
The European Commission is considering launching a second edition of its SAFE loans scheme as Europe seeks to bolster its defences due to growing fears of Russia and doubts about U.S. security commitments to Europe under President Donald Trump.
A British plan to join the original 150 billion-euro ($177 billion) SAFE fund broke down in November after Starmer's government refused to pay a financial contribution to join, representing a setback for a post-Brexit reset of relations.
Asked if Britain would seek to join a new version of SAFE, Starmer said Europe needed to do more to rearm.
"That should require us to look at schemes like SAFE and others to see whether there is a way in which we can work more closely together," he told reporters on his way to China last week. The comments were scheduled for release on Sunday.
"Whether it's SAFE or other initiatives, it makes good sense for Europe in the widest sense of the word - which is the EU plus other European countries - to work more closely together."
European Union Trade Commissioner Maros Sefcovic and other EU officials are due in London for talks this week.
Starmer has tried to work more closely with the EU and remove some post-Brexit trade barriers in contrast to the rancorous relations between previous Conservative governments and the EU as they negotiated Britain's departure from the bloc, which was completed in 2020.
He has also taken a leading role in co-ordinating European support for Ukraine.
Under the SAFE scheme, the EU jointly borrowed money on financial markets to lend to countries in the bloc for defence projects.
Asked about recent criticism from Nigel Farage, whose Reform UK party is leading in the polls, who said the governing Labour government was moving too close to the EU, Starmer said the Brexit campaigner had repeatedly misled the public.
"I wouldn't listen too much to what Nigel Farage has to say about this," Starmer said.
($1 = 0.8440 euros)
(Reporting by Andrew MacAskillEditing by William Schomberg, Alexandra Hudson)
The SAFE loans scheme is a European Union initiative that allows member countries to jointly borrow money for defence projects, aimed at enhancing security and military capabilities.
Brexit refers to the United Kingdom's decision to leave the European Union, which was finalized on January 31, 2020, following a 2016 referendum.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.
Stronger EU defence ties are significant as they enhance collective security, improve military cooperation among member states, and address shared threats more effectively.
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