Brexit: London Willing to Pay 40 Billion Euros

London is willing to pay 40 billion euros to European Union for Brexit

MONEY MONEY MONEY: The sum mentioned (by the press) is much lower than 100 billion which is being asked by Brussels …

Britain is ready to pay up to 40 billion euros to the European Union under the financial regulations that will accompany its release of the Union, says the Sunday Telegraph , citing government sources.

This is the first time that the British government have advanced the source of an encrypted value of the future bill of  Brexit. The sum mentioned is far lower than 100 billion which is being asked by Brussels.

Provided negotiate the financial regulation on trade

The newspaper says that they have referred to government officials speaking on condition of anonymity, Britain would be prepared to pay up to 40 billion if the EU agrees to negotiate the financial regulation as part of a general agreement on future relations between London and the European bloc, including on trade relations.

Brussels, for its part, believes that before talks on a free trade agreement can begin, progress must be made on financial regulation and on the rights of EU citizens resident in Britain and on the issue of the border between Ulster and Ireland.

According to the Telegraph, British officials plan to offer a transaction in which Britain would continue to make annual payments of net 10 billion euros to the EU for up to three years after leaving the Union, which must take place in March 2019.

A “deposit” paid annually until 2019

These amounts would be paid in return for London having maintained access to the European single market, and would be “a down payment” on the final bill.

The chief negotiator of the EU, the French Michel Barnier, has so far refused to publicly name a figure for the bill from Britain.

He said that the “methodology” that will be used to determine how Britain will pay should be developed during the first phase of negotiations for Brexit, which expires in October.

Several senior EU officials confirmed the European estimate is of 100 billion euros.

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