UK Defence Industry Urges Quick EU Pact to Access €150 Billion Fund

Prime Minister Keir Starmer, European Commission President Ursula von der Leyen

The UK’s leading defence and tech organizations are calling on the British government and the European Union to urgently agree on a new UK-EU security pact ahead of the upcoming summit in London on May 19. At stake is the UK defence industry’s access to a proposed €150 billion EU defence fund aimed at strengthening Europe’s military readiness and joint procurement capabilities.

UK Industry Leaders Demand Immediate Action

In a joint letter sent to Prime Minister Keir Starmer, European Commission President Ursula von der Leyen, and European Council President Antonio Costa, top UK trade bodies—including ADS (Aerospace and Defence Industries), the British Chambers of Commerce, and TechUK—stressed the importance of a swift agreement.

They argue that an EU-UK security pact would:

  • Strengthen Europe’s collective security.
  • Enable UK industries to actively participate in EU-led defence initiatives.
  • Foster industrial resilience and competitiveness across Europe.
  • Support innovation through joint R&D and procurement.

New EU Defence Plans Risk Excluding UK Suppliers

The urgency follows the European Commission’s unveiling of its “Readiness 2030” strategy—a bold €800 billion initiative to boost defence spending and cooperation across the EU. A significant €150 billion of this will be made available through loans raised by the Commission, prioritizing EU-based suppliers.

Without a formal security pact, UK firms would be restricted from full participation. Under the current rules, non-EU countries not part of the single market or without a defence agreement, such as the UK and Turkey, would be limited to contributing no more than a third of any co-produced defence item.

Time-Sensitive Talks Amid Broader Negotiations

Some EU states, notably France, are reportedly pushing for the defence pact to be bundled with broader unresolved issues, including fishing rights, youth mobility, and phytosanitary standards—potentially delaying vital security cooperation.

However, Peter Bell, Vice President of the British Chamber of Commerce EU, emphasized:
“Security must not be held back by disagreements on unrelated matters. The UK and EU must prioritize defence collaboration at the May summit.”

Kevin Craven, CEO of ADS, warned that delays could undermine Europe’s ability to address emerging security threats:
“Despite the UK’s technical capabilities and political will, the window for impactful cooperation is narrowing.”

UK Ready to Negotiate, EU Yet to Respond

The UK Cabinet Office confirmed that the May summit would address several bilateral concerns, including defence cooperation.
“The UK remains committed to building a stable, forward-looking relationship with the EU and is prepared to negotiate a Security and Defence Partnership,” said a spokesperson.

The European Commission had not issued an official response at the time of publication.

Parallel Proposals Gain Momentum

In a related move, Britain recently proposed a joint rearmament fund with EU countries to centralize defence procurement and reduce costs. Meanwhile, Poland introduced a “European Defence Mechanism” that would allow countries like the UK, Norway, and Switzerland to participate in EU-led defence funding schemes.

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