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Germany’s EU Bill to Rise by 16% Post-Brexit

Germany’s EU Bill to Rise by 16% Post-BrexitGermany’s EU Bill to Rise by 16% Post-Brexit

Germany will need to pay an extra €3.8 billion ($4.2 billion) into the EU’s coffers once Britain leaves the bloc. A new report, which is likely to rile German taxpayers, suggests France and Italy will face much lower budget hikes.

Germany is being threatened with significantly higher contributions to the European Union’s budget when Britain completes its departure from the bloc in 2019, DW reported.

The Funke-Mediengruppe newspapers on Friday cited a report by the European Parliament, suggesting that the Berlin government would suddenly be on the hook for an extra €3.8 billion, a rise of 16%. In 2016, Germany’s net contribution—minus EU monies returned to fund projects in the country—amounted to €15.6 billion. By comparison, France would face an additional €1.2 billion per annum bill on top of its €5-6-billion net contribution, and Italy would pay an extra €1 billion.

“Brexit does not just increase the financial burden for the EU-27, but also changes the distribution of that burden,” the newspaper group cited the report as saying. Germany, the Netherlands and Sweden currently benefit from reduced payments due to Britain’s EU membership, it said.

Britain is currently the second largest net contributor to the EU after Germany; its departure is expected to leave a €10.2-billion hole in the EU’s finances.

The EU study says discussions are underway about whether cuts should be made to the EU budget or whether new revenue sources can be opened up, including taxes.

The budget gap revelations come as British negotiators meet with their EU counterparts in Brussels for the sixth round on Brexit talks, in an attempt to settle the country’s financial obligations to the bloc. The EU has set a figure of €60 billion, while British officials have, to date, offered just €23 billion.

 

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