France has raised questions over the UK’s participation in the €5bn EU Scaleup Europe Fund, a move that underscores the ongoing friction in the EU‑UK reset talks. The UK, which left the EU six years ago, has agreed to contribute €150mn in seed capital to a fund aimed at boosting Europe’s tech sector against the US and China.

European Commissioner for start‑ups, research and innovation Ekaterina Zaharieva, said in May that there was a mutual interest in UK involvement. But diplomats now say Paris will attach stringent conditions, arguing that the UK is not an EU member and that the initiative must benefit EU states.

A senior EU diplomat warned that side deals with the UK could reduce EU leverage ahead of a crucial summit this autumn to finalise the reset package. Several member states are demanding a quid‑pro‑quo, and France has requested technical details from the Commission on how a non‑EU state would participate.

The fund’s next cycle, starting 2027, will be managed by Swedish buy‑out firm EQT under Horizon Europe. While the current cycle ends in 2027, negotiations continue, with a potential summit in late October or early November. The UK seeks to remove border checks on plant and animal products, re‑link carbon‑pricing schemes, and extend a Youth Experience Scheme.