The European Union is reportedly seeking guarantees that the UK would compensate the bloc if a future British government were to withdraw from a proposed Brexit “reset” agreement currently being negotiated by Prime Minister Sir Keir Starmer. The request reflects lingering sensitivities following the UK’s departure from the EU in 2020, which prompted the bloc to establish a €5.4bn (£4.7bn) fund to mitigate economic disruption across member states.
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According to the Financial Times, a draft agreement on agricultural trade proposes that any party leaving the deal would be liable for the costs of reinstating border and infrastructure controls. The clause, informally dubbed the “Farage clause” by EU diplomats, is viewed by some as protection against the possibility of a future UK government, potentially led by Reform UK, abandoning a sanitary and phytosanitary agreement. UK sources, however, insist the provision is a standard feature of international agreements and would apply equally to both sides.
Labour figures have dismissed claims that the clause undermines democratic choice, arguing it is a routine legal safeguard. Negotiations on the SPS agreement are expected to begin this month, although progress may be slow due to the complexity of the issues involved. Other elements of the reset package, including a potential return to the Erasmus programme and discussions on carbon border adjustments, have already proven challenging.
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Experts say the EU’s firm stance is unsurprising. Anand Menon, director of UK in a Changing Europe, noted that Brussels believes the UK has more to gain from such agreements and is therefore likely to press for maximum concessions. The European Commission and the UK government have both been approached for comment as talks continue.
