This week is “Brexit reset” week for the British government, as ministers engage in a flurry of activities aimed at highlighting their determination to forge closer ties with Brussels 10 years after the country first voted to leave the EU.
On Monday, Nick Thomas-Symonds, the Cabinet minister tasked with negotiating the government’s restart with the EU, will arrive in Brussels for a meeting of the EU-UK joint parliamentary assembly. He travels with a crowd, accompanied by Europe Minister Stephen Doughty and Trade Minister Chris Bryant.
A day later, Chancellor Rachel Reeves will deliver her second Mais lecture to the financial industry, during which she will argue that greater alignment with the EU forms a central part of the government’s growth agenda.
But even as ministers put the finishing touches on their pro-European messages, a new row is breaking out over Brussels’ demand for lower university tuition fees for European students.
“We are still engaging in very regular talks, but there is a lack of progress on this issue,” said a source involved in the talks.
Anand Menon, director of the UK in a Changing Europe think tank, said: “The stand-off over (university) fees reveals not only that the EU will play hardball in these negotiations and insist on getting what it wants, but that the whole reset is perhaps more fragile than the government seems to think.”
The disagreement centers on whether European university students should be charged domestic fees of around £9,500 a year or international fees, which can reach more than £60,000.
Brussels believes that it is not enough to reduce fees only for those who take advantage of the proposed youth mobility plan. The European Commission wants lower fees for all EU students, which would cost British universities around £140m.
Some in the sector welcome the proposal.
Mark Corver, analyst and director at Campus Numerics, said: “This would allow universities to base their admissions solely on merit, rather than financial contribution, and would likely allow them to spend more time addressing regional and national demand.”
The university sector and the British government, however, insist that the plan should not go ahead. UK officials describe it as “a failure”.
It is not just the youth mobility plan that is at risk: the entire restart, three of which are due to be completed this summer, depends on the outcome of the dispute.
While London is eager to sign agreements on food, agriculture and emissions trading, Brussels is more focused on youth mobility and is capable of postponing the other two agreements if an agreement cannot be reached on this point.
Those close to the talks – some of whom bear the scars of 10 years of post-Brexit negotiations – insist a deal can still be reached.
They say relations between Thomas-Symonds and her counterpart, Maroš Šefčovič, and between Starmer and her counterpart, Ursula van der Leyen, are closer and more trusting than those of many of their predecessors.
Thomas-Symonds will hold talks with both Šefčovič and European Parliament President Roberta Metsola this week as both sides seek to clear the deadlock.
But even before those talks take place, there are signs that both sides are willing to reach a deal.
The Treasury and the Department for Education are working on financial analyzes of how much it might cost to accept such a proposal. Government sources say they would want something “really big” in return.
Meanwhile, it is understood that Brussels does not see this as a “binary” issue and is willing to accept a reduction in tariffs, if not full equalization with national tariffs.
“This is part of the normal way business is done: many of these thorny issues are delayed until the final stages of the talks,” said one person involved in them. “Inevitably, there will be an act of God and everything will be solved.”
