FT: Brussels demands UK payments as part of post-Brexit negotiations

The European Union is pressing the United Kingdom to make payments into the EU budget for the first time since Brexit, raising tensions in the post-Brexit “reset” talks agreed by UK Prime Minister Keir Starmer and European Commission President Ursula von der Leyen in May.

According to the Financial Times, the demand is tied to discussions over regional levelling-up funds, with Brussels arguing that the UK should contribute as other non-EU partners like Norway and Switzerland do, in exchange for benefits such as relaxed checks on animal and plant products and access to cheaper energy trading.

An EU diplomat said: “Third countries that want access to the EU internal market pay. You can’t have the benefits of membership when you are not a member.”

The financial discussions come amid broader friction over the implementation of the “reset” agenda. Key disputes include:

• Youth Mobility: Brussels wants a binding international agreement on a youth experience scheme allowing young people to live and work across Europe. London has pushed for a softer approach—a memorandum of understanding (MoU)—and has requested a 50% discount to participate in the EU’s Erasmus+ program. EU diplomats have questioned the UK’s “good faith” in negotiations.

• Energy Market Integration: The UK seeks to re-link with the EU energy market, but Brussels is demanding alignment with EU state aid rules, environmental directives, and trading regulations on emissions allowances, which could become another sticking point.

• Defence Cooperation: The EU’s €150 billion SAFE (Security Action for Europe) defence scheme could allow UK firms to access 50–65% of funds if London pays between €4 billion and €6.5 billion, plus a €150 million administration fee. France favours limiting UK participation to 50%, while Germany supports higher access. With a November 30 deadline for project bids, delays could cost the UK substantial opportunities.

Other areas of contention include participation in agrifood agreements and implementation of the Veterinary deal, which Brussels may link to budget contributions. Member state ambassadors are expected to debate this issue on Friday.

Diplomats describe the UK as employing tough negotiating tactics, pushing hard near deadlines but often eventually compromising. A UK government spokesperson said: “We are working together with the EU to implement the package agreed at the UK-EU Summit. We will only agree to deals that provide value to the UK and the UK industry. Nothing has been agreed, and we will not give a running commentary on ongoing talks.”

The European Commission stressed that the summit marked “the beginning of a new chapter” in EU-UK relations, promoting prosperity and cooperation on common priorities.

By Tamilla Hasanova