The European Union plans to punish British taxpayers by slapping them with a tough fee if UK officials want to have a say in a €150billion (£127billion) defence deal, ministers have been told.
As European leaders gather in London for a summit on May 19, the latest defence and security agreement - seen as making Britons "pay to play" - is expected to take centre stage.
It will follow a humiliating blow to Sir Keir Starmer's negotiating skills after he granted French President Emmanuel Macron better fishing rights for Europe in UK waters.
The British fishing community has recently voiced concerns that the PM would be in for another Brexit betrayal by using the fishermen as a "bargaining chip to be tossed overboard" to win favour with the bloc to boost negotiations in other policy areas.
Increased Parisian pressure has meant that the agreement will not grant an automatic right to bid on contracts for British companies
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Originally, the deal was that Starmer would hand over access to British waters for at least three years, British businesses, such as BAE Systems, will be allowed to bid and sign contracts for arms projects from Security Action For Europe (Safe) EU weapons fund.
But now it has been revealed that increased Parisian pressure has meant that the agreement will not grant an automatic right to bid on contracts for British companies.
"It will involve a ‘pay to play’ component and other terms and conditions," a European diplomat told The Times.
"Some countries want the UK in the game, and others, the French are not enthusiastic."
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As a result, €150billion of EU funding can go towards buying up arsenal from outside the bloc but specific requirements will make access particularly challenging.
An official at the European Commission said the British would be forced into a second deal to qualify for making any bids which would include a "specific, mutually beneficial agreement on the participation of their respective industries in procurements".
"The participation of entities from third-countries to common procurement is subject to a bilateral agreement to define the terms and conditions of such participation."
The latest on Starmer's potential capitulation to the Brussels bloc has come as UK fishermen admit they are worried that the PM could trade off their rights in exchange for a defence pact.
Emmanuel Macron does not seem to inclined to budge
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Nevertheless, Emmanuel Macron does not seem to be inclined to budge despite being tipped to cave just two weeks ago.
Earlier in April, Britain's defence firms were handed a major lifeline after Emmanuel Macron dropped his demands for a post-Brexit military deal to be dependent on fishing rights.
With international talks on a peace deal with Ukraine still yet to reach a conclusion, the French President had been urged by other EU leaders to treat the issues separately, which came just days after the bloc's own foreign affairs chief Kaja Kallas said France's stance on the matter was "surprising".
One Brussels source previously told the Mail: "Even Emmanuel Macron isn’t stupid enough to let fish get in the way."
