France proposes ceiling on value of UK components in €150bn EU defence fund

Negotiations soon to begin on UK's entry to Safe scheme, which it hopes will secure bigger role for its defence firms

France has proposed limiting the use of British-produced military components in the EU's 150bn defence fund, in a move that could complicate negotiations over the UK's entry into the scheme.

Four diplomatic sources told the Guardian that French officials had proposed a 50% ceiling on the value of UK components in projects financed through the EU's 150bn Security Action for Europe (Safe) fund.