Johnson to tell EU's Tusk UK won't pay £39 billion under no-deal Brexit - report
British Prime Minister Boris Johnson is expected to tell European Council head Donald Tusk that the UK will only pay 9 billion pounds (€10 billion) instead of the 39 billion pound (€42 billion) liability agreed by former Prime Minister Theresa May under a no-deal Brexit, Sky News reported early on Sunday.
Johnson and Tusk will meet on Sunday at the G7 summit in Biarritz, France. Johnson’s stance may not go down well with other European Union leaders at the summit.
French President Emmanuel Macron on Wednesday said a no-deal Brexit would be of Britain’s own making and not the EU’s.
An official in Macron’s office said that a no-deal Brexit would not remove Britain’s obligation to pay its exit bill to the EU.
“There is no magic world in which the bill no longer exists,” the official said on Wednesday.
Failure to pay the 39 billion pound Brexit bill would amount to a sovereign debt default, a source close to Macron told Reuters in June.
It comes as the future CAP budget is already under threat, with Günther Oettinger, the EU commissioner for budget and human resources, demanding cuts in farm spending, pointing to the €12bn hole in the EU's finances that the UK leaving will create.
Under plans for the EU's budget for 2021-2027, farmers would receive around €232bn in direct support, a drop of more than €30bn from the current seven-year budget. Member States are not set to conclude discussions on the EU budget till October.
Under the withdrawal agreement between the EU and UK, the UK had agreed to continue paying into the EU budget for the remaining years of the current MFF.
However, if the withdrawal agreement is not concluded and there is a no-deal Brexit, the impacts on the EU budget will need to be clarified.
The loss of the UK's contribution to the budget would need to be mitigated by either increased contributions from other Member States, reductions in EU funding programmes, or a combination of both.
Under the current EU budget proposal for 2021- 2027, funding for the next CAP is set at €365bn. This equates to a cut of approximately 5pc to the overall CAP budget, representing a cut of 3.9pc to Pillar 1 and direct payments, and 15pc to Pillar 2 which deals with rural development.
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