The EUs opening position claims the UK has liabilities of up to 100bn, which would net out at 60bn when British receipts are stripped out. A 20bn net offer would allow the EU to avoid reopening its long-term budget plan prematurely, and would cover unpaid projects Britain signed off before its 2019 exit. It would not, however, cover long-term liabilities or spending promises made during the transition period.
Britains overture is likely to elicit a guarded response from remaining EU member states. While the move opens space for discussions on a financial settlement, negotiators are clear it would be insufficient.
We will at least have something to talk about, said one EU diplomat involved in Brexit. But it is not where the landing zone is. Another senior EU diplomat said: Transition payments do not cancel the bill.
Indeed, the two-year offer of payments tied to a transition or implementation period may fall short of expectations in some capitals. Before Mr Johnson published his plans, some EU diplomats had speculated Britain would suggest a three-year transition with approximately 30bn in net payments.