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UK Reaches Brexit Price Settlement With EU

  • APICS staff
November/December 2017

EU and British negotiators have agreed on a price tag of 45-55 billion euros for the U.K. exiting the European Union, reports The Telegraph.

The EU originally had demanded 60 billion euros from the U.K. for Brexit. This number was calculated based on the EU budget that continues until 2020, the year after the U.K. leaves; loan liability that the U.K. backed for development lending to member states (this money would eventually be paid after the loan comes due); pension contributions for EU officials employed during the U.K.’s tenure; and other expenses, such as the cost of relocating EU agencies currently located in the country.

It is expected that the final settlement will be close to the EU’s desired amount, much higher than Prime Minister Theresa May’s initial offering of 20 billion euros. Agreeing to that price gives the U.K. more leeway on the other two massive negotiations related to exiting the EU: determining the rights of EU citizens living in the U.K. and whether a hard border will be reimplemented between Ireland and Northern Ireland.


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