Saturday, July 10, 2021

UK at loggerheads with european again over £41bn Brexit ‘divorce invoice’

Xavier Bettel, Boris Johnson, Michel Barnier standing in front of a crowd: Photograph: Thierry Monasse/Getty Images © offered by means of The Guardian image: Thierry Monasse/Getty pictures

The govt has rejected claims it owes the european Union £41bn for a Brexit "divorce invoice", even as it emerged the primary funds have been made.

Brussels and Westminster reopened a dispute in regards to the dimension of the invoice, after the publication of the ecu's 2020 accounts published the ecu fee expected €47.5bn (£forty.8bn) from the uk, a sum bigger than British estimates.

The prime minister's spokesperson spoke of: "We don't know that figure. It's an estimate produced with the aid of the european for its own inside accounting purposes. It doesn't reflect all the cash owed back to the uk, which reduces the volume we pay. Our estimate is still in the crucial range of £35bn-£39bn, and we will put up full details in parliament shortly."

The £35bn-£39bn range become introduced by way of British officials all through the Brexit negotiations, whereas the govt's fiscal watchdog, the office for funds responsibility, put the bill at €forty one.4bn (£37.1bn) in 2018.

regardless of the outbreak of tensions, the commission mentioned the uk had already begun to pay its bill. "There became one charge that turned into completed in June … and there may be one in July, August and September. and then in September we might be sending one more bill," a fee spokesperson noted. "up to now every thing that had to be accomplished became carried out, so we haven't any indication by any means that the typical determine can be contested."

Xavier Bettel, Boris Johnson, Michel Barnier standing in front of a crowd posing for the camera: A financial settlement was agreed as part of the divorce deal between the EU and Boris Johnson in October 2019. © photo: Thierry Monasse/Getty pictures A financial agreement changed into agreed as part of the divorce deal between the eu and Boris Johnson in October 2019.

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    The eu expects the united kingdom to pay €6.8bn in 2021.

    in the run-up to Brexit, the united kingdom paid web annual membership fees of £eight.1bn-£10.7bn (€9.5bn–€12.5bn) a 12 months, which opened access to the european single market – an association the government ceded within the name of sovereignty.

    The Brexit divorce contract carries expenses for european infrastructure and social tasks agreed by way of outdated British governments, in addition to pension and healthcare expenses for retired eu team of workers, which amassed over the uk's 47 years of membership.

    British officers say the european determine excludes money owed to the uk. The eu's bills, besides the fact that children, spotlight sums Brussels expects to pay into British coffers. European officials expect to ship €1.8bn to the uk, representing the British share of fines on rule-breaking organizations, gathered through the european competitors authority.

    connected: post-Brexit circumstance in Northern eire is fragile, says Starmer

    British officers also spotlight the uncertainty of the Brexit bill, which comprises liabilities that might also by no means come due, as an instance international locations defaulting on eu loans.

    The argument continues regardless of the monetary agreement agreed as a part of the Brexit divorce deal between the ecu and Boris Johnson in October 2019. through the Brexit deal, both sides settled on a methodology to calculate the bill, in preference to a hard and fast sum. except this month, the european had not ever printed its estimate.

    The withdrawal deal additionally coated citizens' rights, and the Northern ireland protocol, which the united kingdom govt is now seeking to alternate.

    The govt is expected to submit a press release on european finances next week, while the Brexit minister, David Frost, has promised parliament will see his plan on revising the Irish protocol earlier than the summer time recess.

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