Early this week the UK government rejected a request from the European Commission for up to €6.75 billion ($7.8 billion) to join the EU’s flagship defense program, which marks a significant setback for post-Brexit relations under Prime Minister Keir Starmer and seen as another blow to European unity in efforts to counter Russia.

The European Commission reportedly proposed that the UK contribute between €4 billion and €6.5 billion to take part in the Security Action for Europe (SAFE) initiative, and pay in an additional €150 million to €250 million in administrative fees. 

"We will only agree to deals that deliver value for the UK and its industry," the UK government said in a statement of ongoing, secretive discussions. "Nothing has been finalized, and we will not provide a running commentary on ongoing discussions."

British defense companies could gain access to the €150 billion SAFE program if an agreement is reached, which is seen as a vital part of the EU strengthening collective defense readiness. A few select non-EU countries including the UK and Canada, and even Turkey, are invited to participate.

Confirmation of Britain's stance, which sees the European Commission's proposed fees as far too high, also came in recent Financial Times reporting, which described:

European Commission president Ursula von der Leyen dodged a meeting with the UK prime minister at COP30 in Brazil about Brussels’ demand that London pay billions of euros to secure improved ties.

Sir Keir Starmer sought the meeting to complain about EU demands that the UK pay up to €6.5bn to participate in a loans-for-weapons program and make separate contributions to the EU budget, according to two people briefed on the situation.

A UK official in follow-up said, "We weren’t trying to pin her down to talk about this specific issue. In the end they didn’t end up meeting. He hasn’t spoken to her for a while."

A mere six months there was a high-profile summit (in May) which was widely seen as a formal "reset" in EU-UK relations. One top EU diplomat was quoted in FT as saying, "Europe’s defense naturally includes the UK."

Bids for projects under the SAFE program are due by November 30, with intense discussions expected between the UK and EU sides to be ongoing until that point.