Brussels has rebuffed a British request to participate in decision-making in the EU, further delaying a deal to reset post-Brexit relations with the bloc.
London wants a “decision-shaping” role in the rules and regulations that Britain has agreed to follow as part of its push for closer economic ties with the EU, according to people briefed on the matter.
However, the European Commission told member state ambassadors the idea was not feasible as it would give the UK more rights than countries such as Norway and Iceland that pay into the EU budget and participate fully in its single market.
The UK request for “decision-shaping” was a key part of British attempts to defend the deal against criticism from Nigel Farage’s Reform UK party and the Eurosceptic right that the arrangement left the UK as a “rule-taker” from Brussels.
The EU committed in a summit deal last year to “an appropriate UK contribution to decision-shaping”. But it has spurned a UK request to join committees and expert groups covering areas linked to the deals London wants to sign as part of the reset under which Britain would “dynamically align” with EU standards.
These are an agrifood trade agreement, youth mobility deal, linking carbon trading schemes and rejoining the single market for electricity.
EEA members including Norway and Iceland participated only with the approval of the Commission — an option it might be open to for the UK, officials said.
The people briefed on the meeting of EU ambassadors said that, while there had been progress, none of the key agreements was close to being finalised and delaying a planned July 22 summit has bought some time to resolve them.
The EU postponed the summit after Sir Keir Starmer announced he was stepping down as prime minister, with Andy Burnham poised to take over later this month. Officials say they now expect a summit in October at the earliest.
That could still be too soon to secure a deal on electricity trading since the UK was balking at demands to contribute to funding the EU’s poorer regions in return.
Talks on a youth mobility scheme for under-30s to live and work in each other’s countries were also difficult. The Commission said a cap on numbers proposed by London was too low and it was pushing to exempt participants from an annual £776 healthcare surcharge to use the NHS.
Nine member states reinforced a demand that the UK cut tuition fees for EU students as part of any agreement.
Arguments over following EU rules have also delayed a deal to link emissions trading systems (ETS). Both sides wanted this because they would otherwise pay carbon border taxes on some goods flowing between them.
But the UK is resisting Brussels’ demand that it follows EU rules for some parts of financial services legislation that it considers are relevant for the ETS.
Meanwhile, Brussels opposes a British plan to issue more free allowances to help heavy industry, fearing it would give them an advantage over EU producers. It wants the UK to commit to fixing a cap on allowances as a percentage of the EU’s and maintaining that proportion.
The EU has recently adjusted its own scheme to keep more allowances on the market to ease costs for polluters.
Talks for the UK to join a €5bn investment fund for fast-growing companies were also held up over money. France wants a “correction mechanism” that would ensure the UK would not benefit more than its financial contribution to the Scaleup Europe Fund.
The European Commission said: “While we do not comment on ongoing negotiations, we will recall that the EU and the UK are close partners and allies.
“In today’s geopolitical environment, we have a shared interest in stronger co-operation that delivers for our security, our economies and our citizens.”
A UK-EU summit would take place “at the earliest opportunity”.
The UK government said it would not “give a running commentary” on the talks. “At the next UK-EU summit, we will deliver an ambitious package of deals to boost trade, cut red tape and create more opportunities for young people.”
