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UK has to pay EU a 25 billion € debit before leaving the union

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nickcv

Member
https://global.handelsblatt.com/breaking/exclusive-britain-has-a-e25-billion-e-u-bill-outstanding

Britain is hardly the only country with outstanding payments. The European Union has for years been moving around a debt mountain totaling more than €200 billion, known as “Reste à liquider” (RAL). A high-ranking E.U. official said Britain’s portion amounts to €25 billion.
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“A deal with Great Britain is unimaginable if the British have not paid their outstanding debt,” according to the E.U. official.
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I thought this one deserved its own thread. Thanks to "brexit gaf" for spotting this.
 
PJV3

PJV3

Member
This Brexit shit is going to cost a fortune and we will probably need 10 years of austerity to pay off the bill.
 
D

Delusibeta

Banned
Well, there's a trick that Remain completely missed. Had they government admitted that they owed twenty five billion Euros which would have had to have been paid back if we left the EU, I suspect that would have been a large enough bombshell for Remain to win the referendum.
 
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yanipheonu

Member
Hagi said:
They were never going to go well in the first place lol
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Pretty much :( It's international negotiations with an enforced deadline. Britain is in the exact opposite of a position of power in this arrangement.

Certainly doesn't help that one of the major Brexit guys went to the EU and basically insulted all of them.
So yeah, they also lost a lot of good faith.

It's gonna be awful...
 
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nickcv

Member
Delusibeta said:
Well, there's a trick that Remain completely missed. Had they government admitted that they owed twenty five billion Euros which would have had to have been paid back if we left the EU, I suspect that would have been a large enough bombshell for Remain to win the referendum.
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They would have just replied with "350£ m per week"
 
T

Tuffty

Member
yanipheonu said:
Pretty much :( It's international negotiations with an enforced deadline. Britain is in the exact opposite of a position of power in this arrangement.

Certainly doesn't help that one of the major Brexit guys went to the EU and basically insulted all of them.
So yeah, they also lost a lot of good faith.

It's gonna be awful...
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Over the last 40 years we've pretty much irreversibly made our country dependant on being part of a larger economic market. Now that it was put to a public vote we've made ourselves outsiders to that market.

Assuming the figure is true, the EU won't let us leave without paying it off. Which is why all this talk of EU will treat us right and give us a good deal is delusional.
 
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Ucchedavāda

Member
yanipheonu said:
Certainly doesn't help that one of the major Brexit guys went to the EU and basically insulted all of them.
So yeah, they also lost a lot of good faith.
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I think that particular incident caused more amusement than lost faith.

yjfkmo.gif
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Souldriver

Member
Delusibeta said:
Well, there's a trick that Remain completely missed. Had they government admitted that they owed twenty five billion Euros which would have had to have been paid back if we left the EU, I suspect that would have been a large enough bombshell for Remain to win the referendum.
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I doubt it would have made a difference. There were so many clear economic direct negative consequences of the Brexit, yet in the end it was mainly migration that decided the election.
 
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2MF

Member
25 billion €, about 30 million taxpayers. That's like £700 per person, which is not really a small amount...

OTOH this debt isn't really new.
 
C

Cwarrior

Member
lol so instead of saving an imaginary 350 million a week, where having to pay back 25 billion.

The public are the ones that going to suffer to pay back for it, not the politicians.
 
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Souldriver

Member
Chezzymann said:
They should just leave and not pay it

What's the worst that could happen
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Exactly. They wouldn't dare to protest. The UK is in such a strong position, it'll also get the best trade deals out of the EU. The best. Make the UK grea... I mean take our country back.
 
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KingSnake

The Birthday Skeleton
2MF said:
25 billion €, about 30 million taxpayers. That's like £700 per person, which is not really a small amount...
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If every Brexiter puts up roughly £2000, UK can have a much better start of the negotiations.
 
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CyclopsRock

Member
Given this is an outstanding debt, presumably we would have to have paid it either way?

My understanding of RAL is that it's basically legally obliged spending that wasn't budgeted for, right?
 
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Easy_D

never left the stone age
Gallbaro said:
Is it actual recognized debt or a form of the EU throwing invoices at the UK?
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The RAL is the sum of outstanding commitments, commitments agreed to but that have not yet translated into payments. Long term budgetary commitments lead to the existence of amounts of commitments remaining to be paid out (RAL). The phenomenon is similar to when a contract is signed, e.g. to build a house, the commitment is being made, but the construction company will only be paid according to the progress of the work.
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Straight from EU itself.
 
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norinrad

Member
Jeez I wonder how much debt France, Spain, Italy and other tiny countries have waiting for them, or should we all pretend since they haven't left, their debt is not there?
 
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tuxfool

Banned
norinrad said:
Jeez I wonder how much debt France, Spain, Italy and other tiny countries have waiting for them, or should we all pretend since they haven't left, their debt is not there?
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They're not leaving. UK wanted out, so the books have to be squared away.
 
D

Dyson Industries

Banned
Time to leave this place and never look back.

norinrad said:
Jeez I wonder how much debt France, Spain, Italy and other tiny countries have waiting for them, or should we all pretend since they haven't left, their debt is not there?
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What sort of bollocks questioning is this? They're still part of the EU, if they left they'd have to pay their share as well.
 
NoLootBoxDev

NoLootBoxDev

Member
You know, since they are a country and such, they can print 25 billion pounds. That way they can pay all debt. Hell they can print 200 Billions and pay all of it. Since they can print money, why don't do it?
 
TheLaughingStock

TheLaughingStock

Member
nickcv said:
I'm pretty sure any other country would think twice before doing any deal with the UK is something like that happened
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The UK may have thought twice about dealing with serial defaulters like Spain and Germany but in the end they tried to make a deal to further their interests.
 
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norinrad

Member
Amvient said:
You know, since they are a country and such, they can print 25 billion pounds. That way they can pay all debt. Hell they can print 200 Billions and pay all of it. Since they can print money, why don't do it?
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They could, worked well for Italy during the lira years. Things go wrong, turn that damn printer on. How many garbage trucks would be sufficient to bring that money back to Juncker?
 
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Earthstrike

Member
Gallbaro said:
So sounds like bullshit then. Contingent liabilities.
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Well, first and foremost, this is politics. Contracts can't be enforced internationally in the same manner they can to an individual. With that said, it seems like the U.K. has an actual debt here, and since U.K. exporters will want to trade with the EU, the EU will have the leverage in collecting said debt.
 
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nickcv

Member
Amvient said:
You know, since they are a country and such, they can print 25 billion pounds. That way they can pay all debt. Hell they can print 200 Billions and pay all of it. Since they can print money, why don't do it?
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I assume this is intended to be sarcastic =P

TheLaughingStock said:
The UK may have thought twice about dealing with serial defaulters like Spain and Germany but in the end they tried to make a deal to further their interests.
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Not really the same situation, also because the UK is putting themselves in the position to need all those deals quickly.
 
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Earthstrike

Member
Amvient said:
You know, since they are a country and such, they can print 25 billion pounds. That way they can pay all debt. Hell they can print 200 Billions and pay all of it. Since they can print money, why don't do it?
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Not sure if this is sarcasm, but the answer is how much you print affects inflation. Inflation to high is bad.This creates a kind of quasi constraint which means you want to put all your money to good use. Paying off the EU is literally less efficient than simply printing money and giving it to your citizens for free.
 
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