The leaders of Belgium, Germany, Denmark, Luxembourg and the Netherlands want Britain to contribute to EU regional development funds in return for closer energy ties, adding a new hurdle to negotiations ahead of the 20 November summit.
Five EU countries have called for the UK to pay for access to the EU’s internal electricity market, adding a financial and political dimension to negotiations ahead of the EU-UK summit on November 20, according to a letter seen by Euronews.
The leaders of Belgium, Germany, Denmark, Luxembourg and the Netherlands have urged European Commission President Ursula von der Leyen and European Council President António Costa to make Britain’s integration into the EU electricity market conditional on contributions to the bloc’s regional development funds.
“An agreement on an appropriate financial contribution by the UK towards reducing economic, social and territorial disparities between the regions of the Union should be linked with the integration of the UK into the EU electricity market,” reads the letter.
The five countries want to ensure that Britain does not enjoy the economic benefits of closer integration without making a financial contribution in return, potentially turning electricity cooperation into a wider debate over the terms of the UK’s post-Brexit relationship with the EU.
The letter was signed by Belgian Prime Minister Bart De Wever, German Chancellor Friedrich Merz, Danish Prime Minister Mette Frederiksen, Luxembourg Prime Minister Luc Frieden and Dutch Prime Minister Rob Jetten — emphasising a push that appears to be backed by EU leaders.
A draft joint EU-UK statement, also seen by Euronews, suggests that EU leaders broadly support the principle of a British contribution to the bloc’s cohesion funds. The text could still change before the November 20 summit.
UK Under Secretary of State for Energy Security and Net-Zero Martin McCluskey recently said the UK is negotiating to understand the EU’s proposal and that no amount or contribution has been agreed.
McCluskey stressed that any payment would have to deliver value for money for Britain.
However, Britain could emulate Norway’s model.
One possible model is Norway, which participates in the EU’s internal market through the European Economic Area and contributes to grants supporting economic and social development in less prosperous European regions.
Oslo contributes roughly €391 million annually through these cohesion grants, according to the Norwegian Mission to the EU.
EU leaders see the UK’s linking to the EU’s internal electricity market as an enabler of enhanced energy security, decreasing reliance on fossil fuels, improving electricity trading and facilitating cross-border cooperation projects, particularly in the North Sea.
North Sea energy opportunity
The five EU countries signatories, all closely connected to the North Sea energy system, argue that a deal would provide greater predictability for businesses and investors while allowing the EU to exploit the North Sea’s enormous offshore wind potential.
The letter points to ambitions to develop up to 100 GW of joint projects and 300 GW of offshore wind energy.
“An agreement on electricity market integration is crucial, in order to provide clarity and predictability for stakeholders from both the UK and the EU. This is necessary to unlock the full potential of the North Sea area and transform it into the largest clean energy hub in the world,” reads the letter.
The five EU leaders described the UK as a close partner in the energy transition and noted that negotiations have already started on its integration into the EU’s internal electricity market, as agreed in the EU-UK Common Understanding.
“We call on you and the UK to agree during the Summit on a path towards the conclusion of these negotiations,” the letter reads.
Source: www.euronews.com
