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UK Labour Lobbies for Defence Sector Access to EU 'Made in Europe' Funding Labour's shadow defence secretary, John Healey, is presenting a case to European Union finance...

Labour's shadow defence secretary, John Healey, is presenting a case to European Union finance ministers for the UK’s defence sector to be integrated into the bloc’s “Made in Europe” industrial strategy. The proposal, a key part of Labour’s plan to deepen security ties with the EU, seeks to unlock access to European funding mechanisms for British companies, marking a potential pivot in post-Brexit industrial policy.
The move represents a significant effort to re-establish formal defence-industrial links severed by Brexit. In the face of heightened geopolitical tensions following the war in Ukraine, there is a growing consensus for greater European defence collaboration. The UK, as the continent's largest defence spender, has until now been excluded from nascent EU initiatives. Labour’s proposal, which has a degree of cross-party support evidenced by the attendance of Conservative City minister Bim Afolami at the meeting, signals a pragmatic shift towards closer cooperation on continental security and manufacturing.
At the heart of the proposal is gaining UK firms the ability to bid for capital from the European Investment Bank (EIB) and other EU bodies. A primary target is the new €1.5 billion European Defence Industrial Strategy (EDIS) fund, designed to encourage joint weapons production and procurement among member states. The EU has set a target for members to procure at least 40% of their defence equipment collaboratively by 2030, a market UK firms are currently locked out of. This initiative also coincides with internal EU debates on expanding the EIB’s mandate to allow funding for munitions, not just dual-use technologies.
While the strategic logic is clear, the path to an agreement is complex. Any deal would require careful negotiation around post-Brexit trade rules and would likely involve a financial contribution from the UK. Furthermore, the push could face resistance from proponents of EU “strategic autonomy,” such as French President Emmanuel Macron, who may prioritize companies based within the bloc. The outcome of Healey’s diplomatic efforts and the UK's upcoming general election will determine whether this proposed industrial alignment becomes a reality.
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