Thursday, 31 August 2017
UK - EU financial settlement - a note
In March 2017, the House of Lords EU Committee 15th Report for session 2016-17 "Brexit and the EU budget" examined the potential financial demands in Chapter 3 and the UK's legal obligations in Chapter 4. At para. 137 the report said - " ..., the political and economic consequences of the UK leaving the EU without responding to claims under the EU budget are likely to be profound. If the UK wants a preferential trading relationship with the EU, including a transitional arrangement, the EU partners may well demand a financial contribution post-Brexit."
On 13th July, David Davis MP said to the House of Commons - "On the financial settlement, as set out in the Prime Minister’s letter to President Tusk, the Government have been clear that we will work with the EU to determine a fair settlement of the UK’s rights and obligations as a departing member state, in accordance with the law and in the spirit of our continuing partnership. The Government recognise that the UK has obligations to the EU, and the EU obligations to the UK, that will survive the UK’s withdrawal—and that these need to be resolved." (Hansard - Statement).
In June 2017 the EU published its position paper regarding "essential principles on financial settlement" for Brexit - European Commission to UK 12th June 2017. The Commission communicated its position paper to the EU27 on 29th May - HERE.
Whilst the UK is clearly prepared to come to agreement over a financial settlement, a detailed response by the UK government has yet to be published.
Law and Lawyers 5th May 2017 - EU Withdrawal - "divorce" fee
Institute for Government - Brexit explained - EU Divorce Bill
Open Europe - The view from Brussels: How negotiations between UK and the EU on Brexit financial settlement are slowly making progress