Britain and the European Union agreed on Wednesday to allow British students to rejoin the Erasmus+ student exchange programme starting in 2027.

Britain’s contribution for the 2027–28 academic year will amount to £570 million (€650 million), the British government said, adding that the agreement includes a 30% discount compared with the terms set out in the current trade agreement with the EU.

The two sides also agreed to launch negotiations on integrating their electricity markets. In addition, they set a deadline for finalising a trade agreement on food and beverages and for linking their carbon markets by 2026, according to the announcement.

More than 100,000 people in the United Kingdom could benefit from the programme in its first year, the British government said.

This represents a small but symbolic sign of improving relations after Brexit, Reuters comments.

Prime Minister Keir Starmer welcomed the “new era” in relations with the EU in May, when the two sides agreed to renew defence and trade ties following the country’s departure from the Union, described as the most significant development in the post-Brexit period.

For her part, European Commission President Ursula von der Leyen said the agreement would pave the way for new shared experiences for young people and marks another step in renewed cooperation with Britain.

Britain’s return to the Erasmus+ programme had long been a key demand of the EU for strengthening ties between the two sides.

Britain withdrew from the programme after Brexit. At the time, the Conservatives argued that the government had given in to the EU without receiving anything in return for the money.