EU budget contributions hike after Brexit by 16%
Brexit will increase Germany’s net contributions to the EU budget by 16% or €3.8bn, the Funke Mediengruppe reported on Friday.
The newspaper cites a European
Parliament report that reviews the redistribution of expenditure after
the UK leaves the EU. It is estimated that EU member states must pay an
additional €10,2bn.
The EU expects to ameliorate the
financial burden via a €60bn “divorce bill.” However, as the UK is
offering no more than €23bn the prospect of a hard Brexit and an
immediate rise in net contributions increases.
Berlin is advocating a longer than two
years transition period for the UK – during which contributions to the
budget will be maintained at current levels – but Brexiteers are
insisting at a June 2021 exit.
Germany is the biggest country in terms
of both population and GDP. The UK is the second biggest net
contributor. France is facing an increased net contribution of
approximately €1.2bn year and Italy €1bn.
The political discussion now is whether
some of this burden should take the form of direct taxation, bypassing
indirect national contributions to the EU budget.