European Budget Commissioner Günther Oettinger said on Wednesday 9 October in Brussels that his services were preparing an emergency proposal in case the United Kingdom refused to pay its contribution to the EU budget for 2020 due to a disorderly Brexit.
At a press conference, Mr Oettinger recalled that the exit from the United Kingdom is expected to result in losses to the EU budget of €12 billion in 2021 to €14 billion in 2027, a loss of €84 billion over 7 years.
What will happen if the United Kingdom stops paying its contribution to the 2020 budget due to a disorderly Brexit? Mr Oettinger replied to the press that he was preparing a proposal according to which 50% of the shortfall in 2020 (€11 billion) would have to be found through a reduction in some expenditures and the remaining 50% through an increase in national contributions from EU Member States.
Normally, the United Kingdom would have had to pay until 2020, knowing that it had given its agreement to the 2014-2020 MFF. If it no longer wants to put in the money, “the funds will have to be found one way or another”, Mr Oettinger said. He recalled that the EU could not go into debt.
Negotiations between the European Parliament and the EU Council on the EU budget for 2020 are ongoing, in the framework of the Conciliation Committee, which will meet as soon as possible (see EUROPE 12339/9).
Removal of discounts. Mr Oettinger called for an end to all discounts in the EU budget, since with Brexit the British cheque, “the mother of all discounts”, will disappear.
The addition of discounts and corrections over time has resulted in an opaque and unfair system, writes the Commission in its communication on Wednesday's 2021-2027 MFF. It proposes a phasing out of discounts over a five-year period. (Original version in French by Lionel Changeur)