La Croix: The 'No Deal' cost for the EU
10 January 2019
The French newspaper La Croix reports that, in the event of a 'No Deal', there would be a shortfall of 10 billion euros in the European budget to end the year 2019.
The Brexit agreement, pending approval by the British Parliament, provides that the United Kingdom would continue to contribute to the European budget until 2021. Problematically, in the case of a 'No Deal', the UK would no longer be required to pay. In concrete terms, this scenario would result in a bill of 2.5 billion Euros being sent to Germany and 1.8 billion for France for the year 2019 alone. As such, the European Commission is considering alternatives, such as reducing the benefits of certain Member States (Germany, Denmark, Sweden) or making progress on the carbon market. But all these politically very sensitive issues are unlikely to evolve quickly, while the budget gap would be felt immediately following a chaotic exit from the United Kingdom in March.
© La Croix