• UK to pay $760 million in first academic year back
• UK membership of Erasmus+ a key EU demand
• Universities welcome increased opportunity for students

LONDON, Dec 17 (Reuters) - Britain and the European Union agreed on Wednesday to allow UK students to rejoin the bloc’s popular student exchange programme Erasmus+ from 2027, a small but symbolic sign of improved relations after Brexit.

The UK contribution for the 2027/28 academic year will be 570 million pounds ($760 million), the British government said, adding that the deal included a 30% discount compared to the default terms under the current trade deal with the EU.

The two sides have also agreed to start negotiations on electricity market integration, and have set a deadline to finalise a food and drink trade deal and carbon markets linkage next year, the statement said.

Prime Minister Keir Starmer hailed a “new era” in the EU relationship in May when the two sides agreed the most significant reset of defence and trade ties since the country’s departure from the bloc in 2020. “Today’s agreements prove that our new partnership with the EU is working,” EU Relations Minister Nick Thomas-Symonds said, calling the Erasmus+ deal “a huge win for our young people”.

More than 100,000 people in the UK could benefit from the scheme in the first year, the government said.