Will the UK still have to pay the EU under No-Deal Brexit?
It is expected that the U.K. will have to pay around £35 billion for its ongoing obligations if it leaves the EU with the currently proposed deal. I have heard both politicians and members of the public claim that in case of a No-Deal Brexit, no such payment would be required.
Is that correct? If it is not correct but the U.K. refused to pay, what would or could the EU do about it?
united-kingdom european-union brexit
add a comment |
It is expected that the U.K. will have to pay around £35 billion for its ongoing obligations if it leaves the EU with the currently proposed deal. I have heard both politicians and members of the public claim that in case of a No-Deal Brexit, no such payment would be required.
Is that correct? If it is not correct but the U.K. refused to pay, what would or could the EU do about it?
united-kingdom european-union brexit
add a comment |
It is expected that the U.K. will have to pay around £35 billion for its ongoing obligations if it leaves the EU with the currently proposed deal. I have heard both politicians and members of the public claim that in case of a No-Deal Brexit, no such payment would be required.
Is that correct? If it is not correct but the U.K. refused to pay, what would or could the EU do about it?
united-kingdom european-union brexit
It is expected that the U.K. will have to pay around £35 billion for its ongoing obligations if it leaves the EU with the currently proposed deal. I have heard both politicians and members of the public claim that in case of a No-Deal Brexit, no such payment would be required.
Is that correct? If it is not correct but the U.K. refused to pay, what would or could the EU do about it?
united-kingdom european-union brexit
united-kingdom european-union brexit
edited 48 mins ago
Machavity
15.3k44475
15.3k44475
asked 2 hours ago
gnasher729
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1,601313
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2 Answers
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- According to Article 50, when a member state declares the intention to leave the EU they are out after two years unless a different agreement is negotiated. This article does not give any formula to calculate a lump sum for ongoing obligations, so there would be none unless everybody agrees.
- The remaining EU27 will have to pay for obligations which the EU28 entered. So in the case of a hard Brexit, the EU27 will be left holding the bag. They have no legal way to collect the money.
However, this would leave the UK outside the EU with no treaty. That will hurt the EU27, but it will hurt the UK more. The EU27 would enact only the rules they need to protect their citizens.
The EU27 could start to bargain. Landing rights for UK aircraft against landing rights for EU aircraft and a share of MEP pensions. Visa-free travel for UK citizens against visa-free travel for EU citizens and a share of the EDF bills. And so on.
It is not at all clear that the situation is so one sided. Just for example there are the rights of EU citizens to work in the UK and to send money home. There are other issues where the EU27 would want things from the UK. So yes there would have to be some give and take but it is not so desperate.
– Jonathan Rosenne
58 mins ago
1
@JonathanRosenne, consider what I wrote in the third paragraph. That will hurt the EU27, but it will hurt the UK more. I see it as not one-sided, but not perfectly balanced, either.
– o.m.
56 mins ago
add a comment |
Yes
While the current arrangement as part of the Withdrawl deal is contingent on the UK/EU agreeing the whole of that deal, it is unlikely that the UK can complete Brexit with no payments made to the EU even under a no deal scenario.
The FT article suggest that the careful phrasing used by the PM Threasa May and the then Brexit Secretary Dominic Raab means that the UK will pay the EU the agreed liabilities, but will not do so on the schedule agreed during the Brexit negotiations.
What’s pretty much inconceivable is that the UK would use “no deal” to pay nothing to Brussels at all. Doubtless, the UK government could find lawyers to defend such a position in the event of no deal. But that would add one more nail to the coffin of the EU-UK relationship (on top, of course, of the economic catastrophe of no deal itself). It would set back even further the moment when the UK and EU could patch up the relationship. And paying nothing would do incalculable damage to the UK’s reputation as a reliable international partner.
During the negociations the UK has accepted that it has significant liabilities in terms of monies owed to EU budgets, using the lack of treaty enforcement to escape those payments would leave the UK with a reputation as a country that does not meet its obligations.
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2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
- According to Article 50, when a member state declares the intention to leave the EU they are out after two years unless a different agreement is negotiated. This article does not give any formula to calculate a lump sum for ongoing obligations, so there would be none unless everybody agrees.
- The remaining EU27 will have to pay for obligations which the EU28 entered. So in the case of a hard Brexit, the EU27 will be left holding the bag. They have no legal way to collect the money.
However, this would leave the UK outside the EU with no treaty. That will hurt the EU27, but it will hurt the UK more. The EU27 would enact only the rules they need to protect their citizens.
The EU27 could start to bargain. Landing rights for UK aircraft against landing rights for EU aircraft and a share of MEP pensions. Visa-free travel for UK citizens against visa-free travel for EU citizens and a share of the EDF bills. And so on.
It is not at all clear that the situation is so one sided. Just for example there are the rights of EU citizens to work in the UK and to send money home. There are other issues where the EU27 would want things from the UK. So yes there would have to be some give and take but it is not so desperate.
– Jonathan Rosenne
58 mins ago
1
@JonathanRosenne, consider what I wrote in the third paragraph. That will hurt the EU27, but it will hurt the UK more. I see it as not one-sided, but not perfectly balanced, either.
– o.m.
56 mins ago
add a comment |
- According to Article 50, when a member state declares the intention to leave the EU they are out after two years unless a different agreement is negotiated. This article does not give any formula to calculate a lump sum for ongoing obligations, so there would be none unless everybody agrees.
- The remaining EU27 will have to pay for obligations which the EU28 entered. So in the case of a hard Brexit, the EU27 will be left holding the bag. They have no legal way to collect the money.
However, this would leave the UK outside the EU with no treaty. That will hurt the EU27, but it will hurt the UK more. The EU27 would enact only the rules they need to protect their citizens.
The EU27 could start to bargain. Landing rights for UK aircraft against landing rights for EU aircraft and a share of MEP pensions. Visa-free travel for UK citizens against visa-free travel for EU citizens and a share of the EDF bills. And so on.
It is not at all clear that the situation is so one sided. Just for example there are the rights of EU citizens to work in the UK and to send money home. There are other issues where the EU27 would want things from the UK. So yes there would have to be some give and take but it is not so desperate.
– Jonathan Rosenne
58 mins ago
1
@JonathanRosenne, consider what I wrote in the third paragraph. That will hurt the EU27, but it will hurt the UK more. I see it as not one-sided, but not perfectly balanced, either.
– o.m.
56 mins ago
add a comment |
- According to Article 50, when a member state declares the intention to leave the EU they are out after two years unless a different agreement is negotiated. This article does not give any formula to calculate a lump sum for ongoing obligations, so there would be none unless everybody agrees.
- The remaining EU27 will have to pay for obligations which the EU28 entered. So in the case of a hard Brexit, the EU27 will be left holding the bag. They have no legal way to collect the money.
However, this would leave the UK outside the EU with no treaty. That will hurt the EU27, but it will hurt the UK more. The EU27 would enact only the rules they need to protect their citizens.
The EU27 could start to bargain. Landing rights for UK aircraft against landing rights for EU aircraft and a share of MEP pensions. Visa-free travel for UK citizens against visa-free travel for EU citizens and a share of the EDF bills. And so on.
- According to Article 50, when a member state declares the intention to leave the EU they are out after two years unless a different agreement is negotiated. This article does not give any formula to calculate a lump sum for ongoing obligations, so there would be none unless everybody agrees.
- The remaining EU27 will have to pay for obligations which the EU28 entered. So in the case of a hard Brexit, the EU27 will be left holding the bag. They have no legal way to collect the money.
However, this would leave the UK outside the EU with no treaty. That will hurt the EU27, but it will hurt the UK more. The EU27 would enact only the rules they need to protect their citizens.
The EU27 could start to bargain. Landing rights for UK aircraft against landing rights for EU aircraft and a share of MEP pensions. Visa-free travel for UK citizens against visa-free travel for EU citizens and a share of the EDF bills. And so on.
answered 1 hour ago
o.m.
6,11711021
6,11711021
It is not at all clear that the situation is so one sided. Just for example there are the rights of EU citizens to work in the UK and to send money home. There are other issues where the EU27 would want things from the UK. So yes there would have to be some give and take but it is not so desperate.
– Jonathan Rosenne
58 mins ago
1
@JonathanRosenne, consider what I wrote in the third paragraph. That will hurt the EU27, but it will hurt the UK more. I see it as not one-sided, but not perfectly balanced, either.
– o.m.
56 mins ago
add a comment |
It is not at all clear that the situation is so one sided. Just for example there are the rights of EU citizens to work in the UK and to send money home. There are other issues where the EU27 would want things from the UK. So yes there would have to be some give and take but it is not so desperate.
– Jonathan Rosenne
58 mins ago
1
@JonathanRosenne, consider what I wrote in the third paragraph. That will hurt the EU27, but it will hurt the UK more. I see it as not one-sided, but not perfectly balanced, either.
– o.m.
56 mins ago
It is not at all clear that the situation is so one sided. Just for example there are the rights of EU citizens to work in the UK and to send money home. There are other issues where the EU27 would want things from the UK. So yes there would have to be some give and take but it is not so desperate.
– Jonathan Rosenne
58 mins ago
It is not at all clear that the situation is so one sided. Just for example there are the rights of EU citizens to work in the UK and to send money home. There are other issues where the EU27 would want things from the UK. So yes there would have to be some give and take but it is not so desperate.
– Jonathan Rosenne
58 mins ago
1
1
@JonathanRosenne, consider what I wrote in the third paragraph. That will hurt the EU27, but it will hurt the UK more. I see it as not one-sided, but not perfectly balanced, either.
– o.m.
56 mins ago
@JonathanRosenne, consider what I wrote in the third paragraph. That will hurt the EU27, but it will hurt the UK more. I see it as not one-sided, but not perfectly balanced, either.
– o.m.
56 mins ago
add a comment |
Yes
While the current arrangement as part of the Withdrawl deal is contingent on the UK/EU agreeing the whole of that deal, it is unlikely that the UK can complete Brexit with no payments made to the EU even under a no deal scenario.
The FT article suggest that the careful phrasing used by the PM Threasa May and the then Brexit Secretary Dominic Raab means that the UK will pay the EU the agreed liabilities, but will not do so on the schedule agreed during the Brexit negotiations.
What’s pretty much inconceivable is that the UK would use “no deal” to pay nothing to Brussels at all. Doubtless, the UK government could find lawyers to defend such a position in the event of no deal. But that would add one more nail to the coffin of the EU-UK relationship (on top, of course, of the economic catastrophe of no deal itself). It would set back even further the moment when the UK and EU could patch up the relationship. And paying nothing would do incalculable damage to the UK’s reputation as a reliable international partner.
During the negociations the UK has accepted that it has significant liabilities in terms of monies owed to EU budgets, using the lack of treaty enforcement to escape those payments would leave the UK with a reputation as a country that does not meet its obligations.
add a comment |
Yes
While the current arrangement as part of the Withdrawl deal is contingent on the UK/EU agreeing the whole of that deal, it is unlikely that the UK can complete Brexit with no payments made to the EU even under a no deal scenario.
The FT article suggest that the careful phrasing used by the PM Threasa May and the then Brexit Secretary Dominic Raab means that the UK will pay the EU the agreed liabilities, but will not do so on the schedule agreed during the Brexit negotiations.
What’s pretty much inconceivable is that the UK would use “no deal” to pay nothing to Brussels at all. Doubtless, the UK government could find lawyers to defend such a position in the event of no deal. But that would add one more nail to the coffin of the EU-UK relationship (on top, of course, of the economic catastrophe of no deal itself). It would set back even further the moment when the UK and EU could patch up the relationship. And paying nothing would do incalculable damage to the UK’s reputation as a reliable international partner.
During the negociations the UK has accepted that it has significant liabilities in terms of monies owed to EU budgets, using the lack of treaty enforcement to escape those payments would leave the UK with a reputation as a country that does not meet its obligations.
add a comment |
Yes
While the current arrangement as part of the Withdrawl deal is contingent on the UK/EU agreeing the whole of that deal, it is unlikely that the UK can complete Brexit with no payments made to the EU even under a no deal scenario.
The FT article suggest that the careful phrasing used by the PM Threasa May and the then Brexit Secretary Dominic Raab means that the UK will pay the EU the agreed liabilities, but will not do so on the schedule agreed during the Brexit negotiations.
What’s pretty much inconceivable is that the UK would use “no deal” to pay nothing to Brussels at all. Doubtless, the UK government could find lawyers to defend such a position in the event of no deal. But that would add one more nail to the coffin of the EU-UK relationship (on top, of course, of the economic catastrophe of no deal itself). It would set back even further the moment when the UK and EU could patch up the relationship. And paying nothing would do incalculable damage to the UK’s reputation as a reliable international partner.
During the negociations the UK has accepted that it has significant liabilities in terms of monies owed to EU budgets, using the lack of treaty enforcement to escape those payments would leave the UK with a reputation as a country that does not meet its obligations.
Yes
While the current arrangement as part of the Withdrawl deal is contingent on the UK/EU agreeing the whole of that deal, it is unlikely that the UK can complete Brexit with no payments made to the EU even under a no deal scenario.
The FT article suggest that the careful phrasing used by the PM Threasa May and the then Brexit Secretary Dominic Raab means that the UK will pay the EU the agreed liabilities, but will not do so on the schedule agreed during the Brexit negotiations.
What’s pretty much inconceivable is that the UK would use “no deal” to pay nothing to Brussels at all. Doubtless, the UK government could find lawyers to defend such a position in the event of no deal. But that would add one more nail to the coffin of the EU-UK relationship (on top, of course, of the economic catastrophe of no deal itself). It would set back even further the moment when the UK and EU could patch up the relationship. And paying nothing would do incalculable damage to the UK’s reputation as a reliable international partner.
During the negociations the UK has accepted that it has significant liabilities in terms of monies owed to EU budgets, using the lack of treaty enforcement to escape those payments would leave the UK with a reputation as a country that does not meet its obligations.
answered 30 mins ago
Jontia
3,3921826
3,3921826
add a comment |
add a comment |
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