No wonder the EU is trying its best to keep the UK tied to the organisation named the EU.
EU Commission admits the cost of Brexit — and it’s huge
Brexit will cost the EU 21% of its proposed budget increase for 2021–2027.
Yesterday in Brussels, the EU Commission issued a statement ahead of the EU Summit which Boris Johnson is due to attend next week. A Brexit analysis reveals the true extent of the impact of Brexit on the EU Commission’s finances.
Over ONE-FIFTH of the increase in the next EU budget
Is because of the UK no longer subsidising the EU after a clean break Brexit
This comes from official EU figures, adjusted for inflation
And it does not even include the EU’s ‘off-budget’ expenditure which the UK has been financing.
“EU budget for the future — EU budget financing”
The ‘Communication’ released by the EU Commission yesterday (09 Oct 2019), entitled “EU budget 2021–2027 Time to decide”. This has been released for discussion at the EU Council Summit which British Prime Minister Boris Johnson is due to attend next week.
The results make for shocking reading and perhaps show why the EU is so keen to keep the UK in the EU for many years to come.
EU Budget Statement 09 Oct 2019
After allowing for inflation, Brexit will account for 21% of the increase in the EU’s next budget from Jan 2021
The total real increase is proposed to be €324 billion
€41 billion (21%) of this increase is because EU27 countries have to pay more, based on the UK’s exit
A new carbon/plastics tax is proposed to be introduced at EU level, to fund the EU
EU Defence spending is set to rocket
All rebates are to be abolished, meaning richer countries like the UK would pay far more
The cost for the EU due to Brexit does not even include the EU’s ‘off-budget’ spend, worth billions.
The loss of their legally-unsubstantiated claim of a minimum €45bn ‘divorce bill’;
plus the loss they have now revealed for the next budget period.
What does the EU say?
In its report, the EU frames the figures in such a way that “Around 1/8th [of the increased budget] is due to Brexit”. In fact, the EU reveals that this is not based on real numbers after allowing for inflation.
When put in real terms, after inflation, the true impact is that more than one-fifth of the increase in the EU budget will be down to the UK leaving the EU.
It is also worth mentioning that the EU’s proposed budget expects economic growth of 23% over the period. With most economic assessments now putting the EU’s powerhouse German economy in a recession when it reports next month, this growth figure may well prove to be optimistic.
Imagine if 21% of your proposed increase in household expenditure over the next few years was down to one issue from one supplier. Wouldn’t you want to prevent that from happening?
It is clear that the EU has every reason to keep the UK paying — even after any fake ‘Brexit’ — for many years to come. As things stand, any ‘Brexit’ on 31 October will still result in the UK making massive annual payments to the EU. The only way this would stop is if the UK made a clean break, characterised by some as a ‘no-deal Brexit’ but known by us as a ‘Clean Break Brexit’.
In reality, I believe the EU Commission’s increased costs due to Brexit will be far higher, based on all of the published research I have done into the EU’s ‘off-budget’ funds.
To give one small example, the latest EU budget fails to include a new and extra Defence fund, on top of the massive increases in EU defence spending in the budget. The EU admits that “The European Peace Facility is an off-budget fund outside the Financial Framework”. It amounts to €10.5bn.
I look forward to the BBC reporting this breaking news above. Or to be honest any media news channel
[ Sources: EU Commission ]