The European Union has set a firm condition for deepening its relationship with the United Kingdom post-Brexit. To gain expanded access to the EU single market, London must contribute approximately €1.15 billion annually to the bloc’s budget. This was reported by The Times, citing sources among European negotiators.
According to the publication, European officials made it clear to Keir Starmer’s government that financial contribution is a mandatory condition for further removal of trade barriers. The sum has been calculated based on the size of the British economy and the scope of the desired participation in the single market.
“Third countries that want the benefits of the EU internal market pay for them. You cannot enjoy the advantages of membership without being a member,” a European diplomat was quoted as saying.
The EU’s demand falls within the framework of the so-called “reset” of relations with the UK that Prime Minister Keir Starmer has been championing. London seeks to reduce the bureaucratic burden on businesses, particularly in the areas of food trade, energy, and animal and plant products. In return, Brussels is demanding a “fair contribution” to EU budgets, including regional cohesion funds.
A similar model is used by other non-EU members — Norway, Switzerland, and Liechtenstein — which pay for single market access through EEA agreements and bilateral treaties.
No official comment from Downing Street has been made so far. However, government sources note that London is prepared to discuss financial matters but will seek a clear link between the size of any contribution and the economic benefits received. Critics from the Conservative opposition have already labelled the potential payments a “new hidden Brexit tax.”
Experts estimate that full access even to select segments of the single market could bring the British economy additional billions of pounds per year through reduced barriers and increased exports. However, the question of contributions may prove to be one of the most contentious issues in the ongoing negotiations.
Talks between London and Brussels are continuing. The topic of financial contributions is expected to take centre stage at the upcoming UK–EU summit.