Paris pushed the UK out of the EU’s rearmament fund, but the move backfired. France sought $16.2bn from the Safe fund, yet the European Commission approved only €15.1bn. The shortfall stemmed from three United Kingdom‑linked projects that failed to meet the eligibility rules France championed, including those from MBDA.

Safe is the EU’s €150bn rearmament pool, rated triple‑A by the Commission, giving members cheaper borrowing than national debt. France insisted that 65 per cent of a funded product’s value must come from the EU single market or Ukraine, while non‑EU partners can supply only 35 per cent unless they sign a Security and Defence Partnership.

The exclusion of UK‑linked arms firms has spilled over into market smoked. MBDA’s Storm Shadow/Scalp missile, jointly owned by Airbus, BAE Systems and Leonardo, now fails EU loan eligibility, squeezing contracts that rely on British expertise. The United States, through its NATO role, decried the protectionist language, warning that it could cut allies from the pool.

Paris maintains its stance, declaring full support for the Safe criteria it helped craft. Meanwhile, the EU still holds up to €18bn of unused borrowing capacity, with Hungary, Italy and Germany choosing to take fewer loans. The Commission plans to retender the remaining funds in autumn, leaving defence finance in a state of cautious equilibrium.