Hamish Falconer, the cabinet minister in charge of EU talks, told the Guardian that Britain is prepared to discuss paying towards infrastructure schemes in poorer parts of the bloc. This offer comes as ministers look to deepen ties with the union over the next few years. Prime Minister Andy Burnham has said he wants a much closer relationship with the EU in the future, even raising the possibility of rejoining as a full member. While senior figures in Brussels are keen to discuss such an idea, they also want to see the UK begin to start paying for access to the European schemes it says it wants. Five European leaders welcomed the UK’s desire to join the European electricity market this weekend but said Britain would have to pay into a so-called "cohesion fund" in order to do so.
The cohesion fund dispute
UK officials say they do not accept the link between the electricity reforms and the cohesion fund, yet the minister admitted the UK would enter into talks about additional contributions. "We have not accepted that principle," Falconer said. "I understand that that’s what the European Union have asked for, but the UK government hasn’t accepted." He noted that this issue will undoubtedly be discussed after this month’s summit. Any move to bring Britain into the EU electricity market is likely to prove controversial because the fund promotes economic development in poorer regions. UK officials will be cautious about any deal in which British taxpayers’ money could be spent on infrastructure projects in central and eastern Europe. The minister hopes next week’s EU-UK summit will go some real distance in undoing some of the harm that Brexit has done. Negotiators hope to sign deals on food and drink, carbon emissions, and youth mobility during these sessions.
Defence and student fees
Falconer was clear that the UK would be keen to join a future EU defence fund. Last year, negotiations on Britain’s entry into the EU’s €150bn (£125bn) defence fund collapsed after a dispute over the UK’s contribution. The UK had been seeking to join the first round of the EU’s Security Action for Europe (Safe) fund, a low-interest loan scheme that is part of the EU’s push to grow defence spending by €800bn. EU officials suggested an entry fee of up to €6bn, significantly higher than the administrative fee the government had anticipated, and talks collapsed. "I think it’s a real shame that the UK was not part of that scheme," Falconer said on Monday. He expressed hope for a Safe2 opportunity where the UK could join on reasonable terms. Falconer also said he hoped negotiators would agree a youth mobility scheme ready for the 20 November summit. Sticking points remain over demands for home tuition fees for EU students at UK universities. The Guardian reported last week that the UK was prepared to spend up to £450m a year to give EU students discounted university tuition fees if Brussels allowed Britain access to the Made in Europe industrial programme.
