Very interesting.
As mushroom quite rightly refers to, UK citizens are not currently citizens of the EU. They are citizens of an EU member nation – a different thing entirely. Similarly there is no such thing as an EU passport. Despite UK passports having the words “European Union” on the cover they have nothing to do with the EU whatsoever. They are issued by the UK. The EU cannot (at least for the moment anyway) issue passports. The report says this:
“Under the plan, Britons could be allowed to pay an annual fee to Brussels in return for keeping many of the benefits currently enjoyed through EU membership.”
Before they shell out their hard earned they may like to enquire what these “many benefits” enjoyed by individuals are. As far as I can make out the only ones I enjoy are the automatic right to live and work in any EU country and reciprocal health arrangements (via my EHIC hard) should I be taken ill whilst elsewhere in the EU. It is unlikely that the first of these will be taken away entirely; it will probably be not “automatic” but require some sort of permit. The second is easily covered by travel insurance which one should have when visiting the EU anyway.
I think the EU must be getting pretty desperate if it has to offer “associate membership” in this way. If it does, good luck to them (and to the people who pay their “associate membership” subscriptions for what amounts to next to nothing). So long as it does not impinge on the complete break the UK should make with the EU (that is, the UK being subject to no influence of any description by the EU, subject to none of its rules, conventions or laws, and not subservient to its courts) then I’m not too fussed.