UK willing to spend £450 million on EU students through ‘Made in Europe’ scheme

The UK may offer up to £450 million in discounts to EU students’ tuition fees in return for access to the EU’s ‘Made in Europe’ scheme, according to The Guardian.

Government officials have drawn up plans that would cap tuition fees for EU international students, potentially as low as fees for UK students (currently £9,790 per year).

EU officials have fought hard for such an offer, with the ‘reset’ talks on 20 November almost stalled by the issue.

Subsidising the lost income for UK universities was projected to cost the treasury up to £450 million per year. However, sources have told The Guardian the final figure is likely to be lower, based on the treasury’s projections.

In return for such a concession, the UK wants access to the protectionist scheme brought about by the Industrial Accelerator Act (IAA).

The purpose of the IAA is to utilise the €2 trillion (£1.67 trillion) spent by member states on public procurement to stimulate and strengthen EU manufacturing. This also aims to lessen dependency on foreign partners like China and the USA.

Additionally, France […] recently dropped its opposition to the addition, suggesting a potentially bright future for previously gridlocked talks

Trade between the UK and EU is already valued at £868.2 billion, and, while IAA does not cover all sectors, exclusion from the agreement could significantly damage the UK industries it does cover, such as steel, concrete, electric vehicles, and renewable energy.

The Society of Motor Manufacturers and Traders (SMMT), an automotive-industry-linked trade organisation, have suggested the automotive industry alone makes up €80 billion (£66.8 billion) in trade between the two partners.

The Guardian also reported that previous roadblocks to an agreement, such as the Youth Experience Scheme, have now been agreed upon.

This leaves only tuition fees and the Made in Europe scheme to be hashed in the weeks before the ‘reset’ summit.

Additionally, France, who had been the main opponent to including the UK in the IAA, recently dropped its opposition to the addition, suggesting a potentially bright future for previously gridlocked talks.