EU ambassadors are sidelining France’s push to limit UK and Canadian participation in the bloc’s latest military procurement programme, with plans to launch separate negotiations with the two countries next week and an invite to the Commission to present its negotiation strategy on Wednesday.
Yet again, EU ambassadors had to face the French (among others). Paris requested that non-EU countries be limited in their participation in the latest EU defence scheme – the €150 billion SAFE programme – to 50% of the value of products purchased.
That request was not supported by most member states, sources briefed on the situation said. The text to be adopted in the coming days remains unchanged, with no clarity on the eligibility criteria for British and Canadian firms.
To avoid getting bogged down in the eligibility debate – the most contentious part of the agreement – the Council is in favour of the Commission starting separate talks with the UK and Canada, during which the eligibility criteria would be established, the same sources added.
In addition, in a formal attempt to address fears that EU loans could end up benefitting foreign firms first, the EU executive was invited to present its negotiation strategy at next Wednesday’s ambassadors’ meeting, and to put forward arguments in favour of SAFE access for the UK and Canada, three sources close to the file said.
Clock is ticking
These changes are expected to clear the way for the Council to adopt a negotiation mandate, allowing serious talks to begin between the Commission and the UK and Canada.
Most capitals want negotiations to start as soon as possible, since the Commission already shared its recommendations on how to include British and Canadian industries on 11 August.
The clock is ticking, with governments expected to give the Commission a first idea as to how they’ll spend their loans by 30 November – easier to do if they know whether they can count on UK or Canadian components or arms.
Ambassadors were initially expected to give the Commission a green light to talk with the UK and Canada today. But Friday’s agenda was changed to address disagreements over eligibility, slowing EU countries’ approval of a negotiation mandate.
If British or Canadian arms manufacturers remain outside the programme, they will be limited to providing a maximum of 35% of the value of the final product purchased under SAFE, like other key defence players – notably the United States.
Only a separate deal with the EU could remove that cap for British and Canadian firms.
(cp, aw)
