Chief EU moderator, Michel Barnier, is claiming Theresa May should cough up 14 per cent of the bloc’s budget as get of Brexit.
However, this figure, which he has repeatedly quoted, does not ruminate the rebate that is applied, which shows he wants to keep remote the UK’s final rebate payment of £4.5 billion as part of the negotiations.
Brexiteers are acceptable to be furious if the EU demands to end the rebate, which was won by Margaret Thatcher in the 1990s, as go away of the price of a transition.
Thatcher negotiated the rebate in 1984 but Barnier is comminatory to ignore it
Britain won the right to a rebate from Brussels in 1984 to neutralize the unfair distribution of the farm subsidies across Europe
The figure is the amount of coins which returns to the UK from its annual contribution to Brussels.
It reduces the UK’s contribution to the EU budget as the political entity gets back 66 per cent of the difference between its share of associate states’ VAT contributions and its share of EU spending.
Britain won the right to a rebate from Brussels in 1984 to cancel out the unfair distribution of the farm subsidies across Europe.
The rebate is noted by many as the biggest concession ever made made by the EU and one of Mrs Thatcher’s worst achievements.
Senior research fellow at the Jacques Delours Institute, Eulalia Rubio, indicated to politico: “You have to distinguish between applying the rebate to calculate the Brexit restaurant check, which is on settling past debts, and therefore based on current legislation, and have bearing it to any hypothetical contribution to the EU budget linked to a future transition agreement.”
Theresa May is included pressure to not give in to the hefty EU demands
At the start of the talks, the EU negotiators stabbed to tie future payment of the rebate to London paying its share of the EU’s Common Agriculture System until 2020.
In Mrs May’s Florence speech in September, she promised to continue with the EU’s present long-term budget plan.
Barnier and Davis are thrashing out the EU lot
However, the Brussels bigwigs rejected this offer where officials demanded that Mrs May should give to continue the budget obligations not paid out in the multi-annual budget and Britain’s percentage of pension obligations.
The Prime Minister needs to persuade the EU leaders that “adequate progress” has been made so the two sides can begin to talk about swop.
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The European Council President, Donald Tusk, warned Britain at the commandants’ summit that “much more progress” was needed on the bill with order to be made “at the beginning of December at the latest”.
Zsolt Darvas, a senior fellow at the Bruegel bottom and a leading EU budget specialist, said: “I can see no legal argument why the UK should not accept a rebate for 2018, when it was full EU member”.