The EU muscle its game against the United States, but also with respect to the United Kingdom. Although the block has established a debt fund called Safe, which could reach 150 billion euros, it will allow London to participate, but in exchange for a contribution.
Specifically, this fund adopted on May 27 must lead to the financing of armaments and defense projects through reduced rates loans. Loans will be guaranteed by the EU budget and will be reimbursable for a very long period, up to 45 years. Other criteria must guarantee the sovereignty of financing and supported projects: these funded investments must be promoted by at least two states, to guarantee interoperability, and 65% of the components must come from the European Union.
Third countries can be integrated into the project, such as the United Kingdom, but Brussels wants these statements to finance part of the projects each time. In short, they will exchange access to economic funds, for financial participation.
System members include, beyond the EU, Ukraine, Iceland, Liechtenstein, Norway or Switzerland. “Applications” remain open, and Canada could also enter it.
France is very demanding
British officials report that negotiations, which are still experiencing their course to fix the exact amount of British holdings, are particularly tense of the very strict French position. Paris, who seeks to draw the maximum contribution of London, wants to defend his industrial fabric in the armaments and prevent part of the 150 billion evaporating towards British competitors, without a great consideration.
Other countries, such as Germany, have less to defend and, above all, seek to guarantee an economic and strategic issue reinforced with the United Kingdom, in a period in which the support of the United States is no longer insured, and when Russia continues to threaten the east of the continent.
EU Member States must send files before July 27, to aim at the claimed financing. They will have to join their force, at least two by two, to create common projects. Land countries will first have to sign a security and defense agreement, then a specific agreement in SAFE, to join the program.
A first agreement with the United Kingdom, signed in May, must allow it to provide up to 35% of the value of a project backed by SAFE, according to Thomas Regnier, spokesman for the European Commission of Defense issues. The safe fund is part of a broader effort in Brussels, as part of its 2030 preparation plan, a rearme plan that could mobilize up to 800 billion euros.
Source: BFM TV
