Brexit: A row over money could derail Brexit talks before they have begun | The Economist
This week the House of Commons voted to approve the process of withdrawal. The prime minister, Theresa May, will invoke Article 50 of the EU treaty next month, beginning a two-year countdown to freedom.
But the triumphant mood is about to sour, for a reason few people have grasped. The first item on the agenda in Brussels, where divorce terms are to be thrashed out, will be a large demand for cash. To Britons who voted to leave the EU because they were told it would save them £350m ($440m) a week, this will come as a shock. The mooted bill is hugesome in Brussels talk of 60bn ($64bn), enough to host the London Olympics five times overand its calculations open to endless argument. Until now the Brexit debate has focused on grander matters, such as the future of the 600bn-a-year trading relationship between Britain and the EU. Yet a row over the exit payment could derail the talks in their earliest stages.
The tab is eye-watering. Britains liabilities include contributions to the EUs pension scheme, which is generous and entirely unfunded. The biggest item, which Britain will surely challenge, is the countrys share of responsibility for a multi-billion-euro collection of future projects to which the EU has committed itself but not yet allocated a budget. These liabilities, and sundry smaller ones, may be offset a little by Britains share of the EUs assets, mostly property in Brussels and elsewhere around the world. By one analysis (see article), the bill could be as little as 25bn or as much as 73bn.
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