The EU Divorce bill (or Brexit financial settlement) is a sum of money demanded by the European Union (EU) from the United Kingdom (UK) as it leaves the EU. It is part of the current Brexit negotiations. The number is calculated as the UK's commitments after it leaves but has yet to take into account of the UK's investment in funds such as the European Development Fund.
In the WA negotiations, it is officially named financial settlement.
The UK has a 16% share in the European Investment Bank (EIB) worth £8.8bn. based on data submitted by Lawyers for Britain.
In its position, the EU considers that the United Kingdom must honour its share of the financing of all the obligations undertaken while it was a member. This position paper is dated from June 2017.
This has no official figures The bill might be quite complex to be calculated: various liabilities apart from just the core EU budget, and UK entitlement to a portion of EU assets. Various figures have been provided: £50 billion (EUR54bn) for the Sunday Times, £36 billion (EUR40bn) for the Sunday Telegraph.
According to Boris Johnson, European leaders can 'go whistle' over EU divorce bill.
This is introduced at time of article 50 EU notification by Theresa May.
This is introduced and defined in the EU negotiating mandate, which consider an orderly withdrawal requires settling the financial obligations and the methodology for the financial settlement in the first phase of the negotiations.
British position is that the divorce bill might be merged with a transitional period: Theresa May should use her Florence speech to say that the government has set aside £27bn of payments to the EU after Brexit.
UK might make an offer to address the EU's concern that UK withdrawal blows a hole in the budget.
David Davis considers that UK will work with the EU to determine a fair settlement of the U.K.'s rights and obligations as a departing member state.
In September 2017, the European negotiator Michel Barnier, in it address to the Italian parliament has noted that despite progress in each topic of the withdrawal negotiations, major issues were remaining in each topic, including for the financial settlement, for which his goal is that:
- « All that is necessary in this negotiation is that everyone honors the commitments that they have made to each other. To settle the accounts. No more, no less.»
- « To settle the accounts in an objective manner, on the basis of all commitments made at 28.»
- « (...) to provide - and (...) must provide - certainty for project managers working in Europe, such as in Italy and its regions, and in other continents, such as Africa, on the basis of the commitment of the 28.»
- «But beyond money, this is a question of trust between the 27 and the United Kingdom, based on the respect of one's signature. And everyone knows that we will need this trust to create a solid relationship in the future.».
Video EU divorce bill
References
Source of the article : Wikipedia
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