The Strategist

The EU will lose 14 billion euros annually because of Brexit

12/19/2017 - 14:23

The total budget of the European Union will lose annually around 14 billion euros because of the UK's withdrawal from the bloc, EU Commissioner for Budget Guenther Oettinger told at a conference in Brussels.

According to him, half of these funds will be reimbursed at the expense of the remaining countries in the EU.

Britain should finally leave the EU in March 2019, but the country's authorities announced their intention to fulfill their financial obligations to the EU budget until 2020.

The annual budgets of the EU are drawn up with an orientation towards a multi-year financial plan that was last adopted several years ago even before the Brexit vote in Britain. It was calculated precisely for the period until the end of 2020.

According to Oettinger, Britain's decision to leave the European Union is one of the problems for budget planning for the next 10 years, as Brexit will lead to the fact that the EU budget will be deprived of 14 billion euros in revenue annually.

"The UK is the second largest net contributor to the budget (EU), and it is leaving (the union). We cannot pretend that nothing is happening. This hole (in the EU budget) due to Brexit is 50% to be covered by additional fees 27 EU countries and 50% reduction, that is, 7 billion euros per year should be covered by budget cuts (expenditures)," said Oettinger.

According to the European Parliament, in 2015 the UK sent 18.21 billion euros to the EU budget; at the same time the country received funding from the EU of 7.46 billion euros.

The latest research shows that more than half of the British (51%) would have retained their membership in the European Union, while 41% of respondents favored withdrawing from the bloc, which almost completely contradicts the results of the 2016 vote.

The BMG surveyed 1,400 people for The Independent, at a time when Britain moved to the second phase of negotiations on withdrawal from the EU, which will focus on trade.

As noted in the publication, number of votes for EU membership turned out to be the highest in any polls from voting in June 2016.

At a referendum last year, 52% of Britons voted to withdraw from the EU, and 48% voted to stay.