Turkey and South Korea apply to join EU arms scheme

The European Commission has received requests from Turkey and South Korea for their industries to join the bloc’s military procurement €150 billion loan scheme, in exchange for a financial contribution.

“We have received a formal request from Turkey, also from South Korea,” Commission spokesperson Thomas Regnier said on Thursday, referring to giving their industries access to deals financed by the €150 billion in SAFE loans backed by the European Union.

The EU executive will now analyse the request, a necessary next step before a formal recommendation is made to the Council to open negotiations.

But Turkey’s participation is likely to face opposition from Greece and Cyprus, given their long-running disputes with Ankara since the Turkish invasion of northern Cyprus in the 1970s.

Greek officials have already spoken out against Turkey and its companies joining the scheme. And while defence decisions can be taken by qualified majority, in practice EU capitals usually wait for consensus, making approval for Ankara a long shot.

South Korea’s request may be seen more positively, as Seoul has become a major supplier for Europe’s rearmament push in recent years – particularly in Poland.

The EU originally set up the €150 billion loan facility to help member states procure arms, with foreign suppliers capped at 35% of the value of contracts

Any non-EU country seeking access has to sign a special agreement with Brussels, setting out conditions including a financial contribution.

The EU countries are currently discussing starting negotiations with the UK and Canada to allow their companies to benefit from the procurement deals.

Tough negotiations, are already under way with the UK and Canada to allow their industries into the scheme. But France is still holding back on granting access to Ottawa and London as it would rather EU industry be supported by the scheme than let governments buy 100% British or Canadian kit. EU ambassadors are expected to discuss a compromise at a meeting on Friday.

CORRECTION: This article has been updated to clarify that the Commission is required to assess requests by countries to join SAFE, which could lead to a rejection or recommendation to the Council. 

(aw, cp)