EU tells UK: pay into the bloc’s budget or lose access to key trade benefits

The European Union is demanding that the UK resume payments into its budget for the first time since Brexit, reigniting tensions between London and Brussels. EU member states want the UK to contribute to regional development funds in exchange for easier trade on animal and plant goods and fewer customs checks. Diplomats argue that “third countries can’t enjoy the benefits of membership without paying their share.”

Source  Financial Times

The dispute comes just six months after both sides celebrated a “reset” in relations at a Windsor summit. However, negotiations have stalled over a youth mobility scheme aimed at restoring student and work exchanges. While Brussels insists on a binding agreement, London prefers a non-legal “memorandum of understanding,” similar to its other post-Brexit deals.

Sources say the UK’s demand for a 50% discount on joining the Erasmus+ student exchange programme has angered EU officials, who question London’s commitment to cooperation. Analysts warn that if no compromise is found soon, the fragile post-Brexit thaw could give way to another round of political and economic friction between the two sides.