The Government acknowledges the Committee’s interest in the EU’s Security Action for Europe (SAFE) negotiations. The UK entered these negotiations in good faith, recognising our mutual strategic interest and commitment to work with the EU on defence. However, we were not able to conclude these negotiations with an agreement. This Government has always been clear that we will only sign agreements that are in the national interest - in this case we were unable to reach an agreement that passed that test. Whilst it is disappointing that we were not able to positively conclude negotiations, UK defence companies continue to have access to SAFE contracts under standard third-country terms, with the potential to contribute up to 35% of contract content. As the Prime Minister has set out, Europe’s security depends on working more closely together, building deeper industrial ties, and strengthening a more European NATO. This Government remains committed to pursuing cooperation with the EU and our European partners on defence and security that aligns with our NATO First policy, supports our defence objectives, and delivers for the UK taxpayer. We will continue to engage bilaterally with the EU Commission and EU Member States to advance shared industrial and capability priorities. The Government continues to monitor EU defence initiatives closely, including proposals such as the security component of the proposed European Competitiveness Fund. Our approach remains focussed on strengthening the European defence industrial base and ensure that UK-EU defence cooperation is practical, delivers tangible benefits, and complements our commitments to NATO as well as existing bilateral and multilateral frameworks. The Security and Defence Partnership agreed with the EU in May 2025 provides a strong framework for ongoing dialogue on these matters. Alongside the UK’s bilateral engagement with European allies, this will help to reinforce NATO’s role as the primary guarantor of European security, whilst supporting growth and resilience in the UK defence sector. The Government will continue to update Parliament on any significant developments.