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четверг, 27 декабря 2018 г.

«Breaking News» No deal Brexit could leave Europeans paying more into EU budget

A no deal Brexit could leave Europeans having to fork out billions more to plug the gaping hole in the EU's budget, the bloc's finance chief has warned.


Gunther Oettinger said the remaining 27 member states will face a hefty bill if the UK does not pay the £39billion divorce bill it has promised.


The money covers the UK's contribution to EU annual budgets up to the end of 2020 - when the Brexit transition period is due to end.


And it also covers ongoing costs Britain has agreed it owes, including a contribution to the pensions of EU workers and the cost of staying in some EU agencies.


It means that if Britain decides to tear up the divorce cheque then Brussels will suddenly face a big hole in its finances. 


Mr Oettinger warned that Germany alone could have to cough up hundreds of millions of euros more to fund the shortfall.


Quizzed on the possible fall-out of a no deal Brexit, Mr Oettinger, EU Commissioner for the Budget, said it could mean Europeans having to pay more.




Gunther Oettinger (file picture) said the remaining 27 member states will face a hefty bill if the UK does not pay the £39billion divorce bill it has promised


Gunther Oettinger (file picture) said the remaining 27 member states will face a hefty bill if the UK does not pay the £39billion divorce bill it has promised



Gunther Oettinger (file picture) said the remaining 27 member states will face a hefty bill if the UK does not pay the £39billion divorce bill it has promised



He told the German newspaper Westfälische Rundschau: 'It depends on whether, following a disorderly Brexit, the British would be prepared to fulfill their rights and obligations as contributors by the end of the financial year 2019. 


'If this is not the case, next year a medium three-digit million amount will be added to Germany.' 


His comments suggest that the EU 27 member states left in the bloc could have to pay billions more into the Budget.  


Brexiteers including Boris Johnson have urged Theresa May to refuse to hand over all of the divorce bill until the EU agrees to a trade deal - warning that Britain risks throwing away its trump card in talks if it signs over the cash earlier.  

Appearing on the BBC's Andrew Marr show earlier this month, Mr Johnson said: 'Unless they help us then there is a risk of no deal, and to incentivise them further we should say that we will delay the payment of at least half the 39 billion until they've done a free trade deal by the end of 2020. 


'And that is the way to I think put a bit of a tiger in the tank and to get these talks moving.'


But Remainers have said that it would be impossible for Britain to walk away from its financial commitments.


Peter Kyle, a Labour MP and supporter of the anti Brexit group the People's Vote, said: 'Those who claim we can walk away and pay nothing are selling yet another Brexit fantasy. 


'The bulk of the divorce bill represents unavoidable legal obligations. But however much we pay it will be money spent for nothing in return.' 


The precise details of what the £39bn divorce bill will go on have not been spelt out by either the UK or the EU. 


The Office for Budget Responsibility said that while most would be paid over the next five years, the UK will be paying some money into the EU budget until 2064. 

The EU's Budget cycle runs in six-yearly cycles, and the next Budget - which is being thrashed out currently - runs from 2021 to 2027.


If the UK decided to renege on its promise to pay the bill then Brussels would be left with a hole to fill.


While the EU could try to slash expenditure on future projects to rein in spending, it would probably ask for more cash from the remaining member states. 


The PM has thrashed out a Brexit deal with the EU - but her plan has been plunged into turmoil and her authority dealt a hammer blow by the troubled talks. 


She delayed a crunch vote by MPs on her deal after admitting that she would have been defeated by a massive margin.


The humiliating admission dealt a major blow to her authority and triggered an attempt to oust her as leader by her Brexiteer backbenchers.




Theresa May (pictured with her husband Philip heading to church in Maidenhead on Christmas Day) is facing massive opposition to her deal from both Remainers and Brexiteers


Theresa May (pictured with her husband Philip heading to church in Maidenhead on Christmas Day) is facing massive opposition to her deal from both Remainers and Brexiteers



Theresa May (pictured with her husband Philip heading to church in Maidenhead on Christmas Day) is facing massive opposition to her deal from both Remainers and Brexiteers


Mrs May survived the dramatic confidence vote and clung on in No10, but only by promising to return to the negotiating table to convince the EU to scrap the controversial Irish backstop.


The backstop - a plan B which comes into force if no trade deal is done in time, is deigned to prevent a hard Irish border from emerging after Brexit.


It keeps the UK tied to the EU customs union and would impose extra single market checks in Northern Ireland. 


But the plan has sparked fury from politicians across the political spectrum who have warned that it undermines the territorial integrity of the United Kingdom.


The PM's pleas to the EU to change the backstop in order to give her deal a fighting chance of getting passed by MPs have so far been snubbed.


The PM's deal is widely expected to be voted down by MPs when the Commons votes on it next month, after over 100 Tories voiced grave concerns over the blueprint and the DUP vowed not to back it.


But Mr Oettinger said he believes that Britain could back the Brexit deal - despite the fierce criticism it has sparked.


He said: 'It is not entirely unlikely that the British Parliament will vote for the divorce treaty in January. 


'For a disorderly Brexit or for a new referendum there is certainly no majority.'     


Link hienalouca.com

https://hienalouca.com/2018/12/27/no-deal-brexit-could-leave-europeans-paying-more-into-eu-budget/
Main photo article A no deal Brexit could leave Europeans having to fork out billions more to plug the gaping hole in the EU‘s budget, the bloc’s finance chief has warned.
Gunther Oettinger said the remaining 27 member states will face a hefty bill if the UK does not pay the £39billion divorce bill it ...


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Dianne Reeves Online news HienaLouca





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