EU presses UK to guarantee discounted university tuition fees for European students

Failure to agree lower fees for EU citizens studying in UK should delay prized food and drink deal, members say

The EU is seeking a firmer pledge from the British government to guarantee European students discounted rates on university tuition fees before a much-anticipated summit this month.

At a meeting of senior EU diplomats on Wednesday, at least six member states opposed delaying a deal on tuition fees until after the summit. Many believe a failure to reach an agreement should delay the highly prized food and drink deal to cut Brexit red tape coming into force.

Andy Burnham will meet the EU leaders Ursula von der Leyen and António Costa on 20 November in Brussels, with the aim of signing three agreements – on food and drink, carbon markets and youth exchange – as well as pledging a “trusted partnership” on steel and defence industries.

But a longstanding dispute over whether EU students should pay costly international tuition fees at British universities remains unresolved and could delay the implementation of the food and energy deals, which are worth billions to the British economy.

The EU wants a return to the pre-Brexit status quo where European students paid the UK domestic rate of university tuition, rather than international fees, which can be about four to six times higher for an undergraduate degree.

European Commission negotiators have proposed postponing an agreement on tuition fees by six months to ensure the success of the November event, where Burnham is expected to show his commitment to much closer ties with the EU.

But at least six member states, including in central and eastern Europe, want the university fees issue settled by the summit, while many are seeking a firmer commitment on the issue from the British government, according to four EU sources.

One EU diplomat told the Guardian: “Having a youth experience scheme without an agreement on tuition fees has very little added value,” noting the much lower cost of university education in many EU countries and therefore potential greater advantage to British students.

A second EU diplomat said there was cautious optimism about the November summit, but “a large majority” wanted “a more convincing British commitment” on tuition fees.

The British government has been contacted for comment.

For the EU, the creation of a youth experience scheme, known as Yes, which will enable those aged 18 to 30 to live, work and study on both sides of the Channel is a high priority. The erosion of people-to-people links is seen as one of the big losses of Brexit, and many European officials studied in the UK, making the issue especially resonant.

EU officials argue the bloc has leverage, saying the food and drink deal – a Labour manifesto pledge estimated to be worth £5.1bn a year to the British economy – would come into force only if there was a satisfactory agreement on tuition fees.

Similarly, the agreement to relink emissions trading systems sundered by Brexit, which would protect British exporters from European carbon taxes, could also be delayed pending agreement on tuition fees.

A leaked version of the summit statement hints at the link between the trio of agreements, looking forward to “their joint and timely entry into force”.

Separately, EU sources have suggested without a deal on tuition fees, the EU could delay talks on British reintegration into the European electricity market that are expected to intensify next year. To secure its return to the market, the UK would have to pledge an “appropriate” contribution to European cohesion funds aimed at boosting economic development in poorer regions.

This week the Guardian reported 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.

The EU said there would be no deal on Made in Europe at the November summit because the bloc was still finalising its position on the key draft law, the Industrial Accelerator Act (IAA).

Targeted at strategic industrial sectors, such as electric cars and renewables, the law would mean public subsidies and contracts would only go towards products made in Europe.

France, supported by many lawmakers in the European parliament, is pushing for a narrow definition of Made in Europe, while Germany leads a larger group of countries that don’t want to exclude trade partners including the UK.

While Britain is keen to resolve the issue, EU lawmakers are not expected to finalise the IAA text until next spring. In a significant milestone, France and Germany struck a compromise on Made in Europe favourable to the UK, but it only applies to cars, not the other industrial sectors in the IAA such as renewables and nuclear technology, or other draft proposals aimed at promoting European preference.

In a win for the UK, the draft summit statement proposes a “trusted partnership” on strategic industries, starting with steel and defence. The aim is to stop either side becoming collateral damage of the other’s trade defence measures targeted at China’s heavily subsidised imports.