Brexit: Towards a bill of 100 billion euros for the UK

Finance General News
The bill for the United Kingdom to leave the European Union could be 100 billion Euros

The Brexit bill to be paid by the United Kingdom as part of its exit from the European Union now amounts to 100 billion euros according to the Financial Times. A figure immediately rejected by David Davis, the British Minister for Brexit.

European negotiators have revised upwards the amount of financial requirements that Britain may have to assume in return for leaving the European Union, even if London continues to challenge the figures.

A few hours of intervention by Michel Barnier, chief negotiator for the EU, the Financial Times(FT) reported Wednesday that London may have to pay a bill totaling 100 billion euros a figure immediately rejected by David Davis, the British Minister for Brexit.

An invoice revised upwards

The European Commission estimated so far at about 60 billion euros the amount that London will owe the EU as part of the commitments already made by the EU but not yet funded. According to the FT, this figure actually represent a net payment after subsequent reimbursements.

A European official involved in the negotiations said, however do not take over the amount of 100 billion raised in the article FT, while admitting that some evaluations prove higher or much higher.

Last month, the circle of Brussels think-tank Bruegel had advanced a figure of 109 billion euros, among other assessments. After redemption, this amount would represent a net payment of 65 billion euros, also said the “think tank” .

Additional costs considered

“We will not pay 100 billion. What we need to do is discuss in detail what are the rights and obligations “ , warned David Davis in an interview with ITV.

According to the FT, European negotiators have included in their estimates, at the request of several Member States, additional costs related to the agricultural sector and the administrative operation of the Union in 2019 and 2020.

Michel Barnier said repeatedly that the final amounts owed by London could not be precisely calculated before the actual output of Britain from the EU.  But EU leaders want an agreement on the method of calculation before the opening of talks with the government of Theresa May.

They hope that such an agreement may be concluded by December.

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