The absence of the summaries between the parties limits the ability of British arms or companies based in Great Britain to contribute to the various projects related to the European Union’s defense system. The negotiations exploded against the background of the deadline for the EU countries to submit initial proposals for loans (this Sunday), which are expected to be granted next year.
The European Union has reportedly demanded entry fees of billions of euros for British companies to gain access to a larger share of the loans, which will eventually be funded by the European Commission. Britain agreed to pay a fee, but insisted that it would not sign up to the agreement at any price.
The European Commission will lend up to 150 billion euros (£130 billion) to finance long-term loans to EU countries, with the aim of encouraging them to buy together ammunition, artillery and military drones. A defense deal agreed with the European Union in May paved the way for UK-based defense companies to contribute to projects receiving funding from the scheme. However, without a separate agreement with the country, British companies will be limited to supplying 35% of the total value of a finished product.
19 of the 27 EU countries have so far applied for loans, which are expected to be granted early next year. Poland received the largest share of funding, totaling 43.7 billion euros, followed by Romania with 16.6 billion euros, while Hungary and France were allocated 16.2 billion euros each.