Negotiations for the UK to provide financial support for a European Union defence tech fund have reportedly broken down over the price tag.
The UK was said to be in talks to back the Security Action for Europe (SAFE) fund, a vehicle worth hundreds of billions to provide financial assistance to participant states to invest in defensive capabilities and technology.
Britain’s offer to provide a contribution in the tens or hundreds of millions of pounds towards the fund was rejected by representatives from the EU, however, for not meeting their expectations, according to reporting from the Financial Times.
It has been reported that the EU has set the required contribution from the UK at around €2bn (£1.75bn).
While other contributing nations including Canada have only been asked to provide investments in the tens of millions, the advanced nature of the British defence industry has inflated the price tag for the UK.
A spokesperson from the European Commission has said the UK can “still benefit” from the fund, with talks still able to restart with investments not required for some months.