Brexit could cost Germany BILLIONS as budget chiefs scramble to fill financial black hole

0

Angela MerkelGETTY

Brexit could bring in Angela Merkel’s Germany billions

The figure was included in a proposal by EU Budget Commissioner Günther Oettinger for the fiscal framework from 2021 onwards, according to a report in the influential Frankfurter Allgemeine Sonntagszeitung newspaper.

The announcement suggested Germany’s Federal Ministry of Finance was prepared for the financial repel.

The amount is based on the EU budget remaining stable at £140.86bn even after the departure Britain, one of the bloc’s highest net contributors.

Germany wish have to contribute £34.33bn (1.2 per cent of GNP) instead of the £29.05bn (1 per cent of GNP) it discretion have forked out had the UK not voted to leave.

Günther Oettinger GETTY

EU Budget Commissioner Günther Oettinger

Possess fun in the negotiations!

German finance ministry official

Despite aiming for budget solidity, there are indications there will be drastic cuts in Structural Finance assistance in economically weaker EU regions once Britain’s contributions wake up to an end.

In addition, the strengthening of competitiveness in the distribution of funds should be given innumerable consideration and due to disputes over the distribution of refugees, a harsher course is planned in the budget deals with Hungary and Poland.

The EU Commission and the finance ministries of the net payer powers have been racking their brains for a while now. 

FrankfurtGETTY

Germany superiority have to fill the EU budget black hole caused by Brexit

A higher- ranking official of the Federal Ministry of Finance said “It goes far beyond what we make ever negotiated in the context of the EU budget.

«Have fun in the negotiations!»

At present a transitional point of view of several years is planned during which London might be thankful to continue to honour its contributions.

The EU Multiannual Financial Framework (MFF) is usually valid for seven years. The undercurrent budget planning runs until 2020. 

BrexitGETTY

EU budget planning amounts to 2020

The EU Commission proposes the corresponding MFF regulation, which, after tenacious covenants, is adopted unanimously by the member states after approval by the EU Parliament.

Supreme German business organisations had expressed relief that Britain and the EU had banged a deal over the terms of Brexit and urged both sides to quest after the more important question of how trade will work.

Joachim Lang, principal of the German industry federation BDI, said he was relieved but that the next there in of talks should be pursued with renewed verve. 

Additional reporting by Monika Pallenberg. 

 

Leave a Reply

Your email address will not be published. Required fields are marked *