20 May 2025, 13:58

By Tom Saunderson

Formalising defence and security co-operation between the UK and EU could bring significant economic benefits for Britain’s defence, space and aerospace sectors if it comes off.

Both sides will coordinate on sanctions, share intelligence and collaborate on space-related security.

Crucially, the agreement “paves the way” for UK-based defence firms to access Security Action for Europe (SAFE), a €150 billion fund providing loans to member states for strategic defence projects.

This is a significant political and economic signal, which follows a less formalised consensus between the UK and EU regarding the importance of rearmament in the face of Russian aggression in recent years.

While access to SAFE isn’t yet guaranteed, the framework sets the stage for renewed participation and, if agreed, has major implications for both businesses and investors.

Market access equals long-term growth

SAFE and its sister initiatives under the European........

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