The EU’s regrettable approach to the Security Action for Europe (SAFE) negotiations does not negate the need for improved UK-EU cooperation on defence industrial matters as a matter of strategic urgency. We therefore recommend the Government continue to seek a deal on cooperation under SAFE, provided the EU is willing to reconsider its financial demands. Given the strategic priority of closer UK cooperation with the EU on defence industrial matters, it should be clear with the public as to the reasons why the negotiations failed, and raise the importance of avoiding the same mistakes occurring again at all levels with the EU and bilaterally with Member States. (Recommendation, Paragraph 57)