Britain willing to discuss paying into EU to join electricity market, says minister

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Hamish Falconer says UK has ‘not accepted principle’ of linking electricity trade to ‘cohesion fund’ but two sides will discuss issueBritain is willing to discuss paying towards…

Britain is willing to discuss paying towards infrastructure schemes in poorer parts of the EU in return for access to the European electricity market, according to the minister in charge of renegotiating the bilateral relationship.

Hamish Falconer, the cabinet minister in charge of EU talks, told the Guardian he was sure the two sides would discuss the issue after this month’s summit, as ministers look to deepen ties with the union over the next few years.

Andy Burnham, the prime minister, has said he wants a much closer relationship with the EU in the future, even raising the possibility of rejoining as a full member. But while senior figures in Brussels have said they are keen to discuss such an idea, they also want to see the UK begin to start paying for access to the European schemes it says it wants.

This weekend five European leaders welcomed the UK’s desire to join the European electricity market, but said Britain would have to pay into a so-called “cohesion fund” in order to do so.

Falconer has said he hopes next week’s keenly anticipated EU-UK summit “will go some real distance in undoing some of the harm that Brexit has done”. Negotiators hope to sign deals on food and drink, carbon emissions and youth mobility.

Any move to bring Britain into the EU electricity market, however, is likely to prove controversial. The EU cohesion fund promotes economic development in poorer regions in the bloc and UK officials will be cautious about any deal in which British taxpayers’ money could be spent on infrastructure projects in central and eastern Europe.

Falconer was, however, clear that the UK would be keen to join a future EU defence fund. Last year, negotiations on Britain’s entry into the EU’s €150bn (£125bn) defence fund collapsed after a dispute over the UK’s contribution.

The UK had been seeking to join the first round of the EU’s Security Action for Europe (Safe) fund, a low-interest loan scheme that is part of the EU’s push to grow defence spending by €800bn.

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