According to London press reports, a negotiating agreement reached at expert level negotiations on the conditions for extinction of British membership of the EU made the United Kingdom fulfill its financial obligations with the European Union, but the specific amount is expected to be known only in the distant future. The British Ministry of Finance rated media reports on Wednesday as “guesses”.
According to the Financial Times report Wednesday, London has agreed to fully meet its EU payment obligations to the extent to be determined by Brussels.
According to diplomats pointing to the name of the London daily Economic News, the two sides are of the opinion that no final agreement is needed now, but the British government wants to avoid having to pay a single bigger amount. Instead, London develops a mechanism to calculate payments in the coming years as the specific commitments become actual.
On the basis of this model, for example, the British Government’s contribution to the UK’s contribution to the payment of EU staff pension payments would be paid on an annual basis. This also means that the final amount of the “Brexit account” will only be known when the last EU employee retired who is to be financially liable for his retirement under the commitments previously undertaken, and which is certainly decades – is in the Financial Times report.
According to the diplomatic sources of the paper, these financial obligations extending over the decades may amount to up to EUR 100 billion, but the net UK payments, which will offset UK payments, would not reach half of that amount.
According to other media reports from Wednesday, the final net bill may be between 50 and 65 billion euros.
British Deputy Finance Minister Liz Truss in the Wednesday afternoon debate at the London House of Commons, responding to the opposition report on press reports, described the news of the deal as “mere media screening”. According to Truss, the government will “inform the House if there are new details that can be counted.”
He added that the only concrete and well-known sum of money is currently the 3.7 billion-euro budget fund set by the Treasury Department to prepare the British economy for “any possible outcomes of exit negotiations”.
However, the British financial debt to the European Union is nevertheless one of the pivotal issues in which the EU is of the view that substantive progress has to be made in order to continue the negotiations in the Brexit negotiations with the current phase of determining the British conditionality of British exit after-trade relations – first and foremost on trade relations.
London would like to see it happen at the EU summit in December, but the European Commission will actually need to make real progress in guaranteeing the future entitlements of foreign EU citizens and to develop a border control system between the Republic of Ireland and Northern Ireland.
British Prime Minister Theresa May has recently said that he would not want Britain’s EU partners to fear that they would have to pay more or less to the European Union budget because of the cessation of British membership of the EU.