Britain CAPITULATES? UK finally accepts it WILL have to foot a bill for Brexit
BRITAIN has, for the first time, explicitly acknowledged that it will face a heavy financial bill after exiting the EU.
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The UK’s admission is likely to avert a full-scale dispute with EU officials over an ‘exit bill’ as the two sides prepare for talks next week.
In a written statement to Parliament, the Government recognised the need for a “financial settlement”, adding “that the UK has obligations to the EU… that will survive the UK’s withdrawal - and these need to be resolved”.
The text has been released by Brexit minister Joyce Anelay, and has been seen by Brussels as a significant and important development.
Diplomats within the EU say the wording of the statement “goes further” than Prime Minister Theresa May’s previous reference to Britain’s willingness to reach a “fair settlement” of as yet unspecified obligations.
The UK’s concessionary statement came as former Prime Minister Tony Blair called on Mrs May to consider negotiating a deal to stay within a Europe that was “itself prepared to reform and meet us halfway”.
In an article published on his own website, Mr Blair said: “Reform is now on Europe’s agenda.
“European leaders, certainly from my discussions, are willing to consider changes to accommodate Britain, including around freedom of movement.”
He went on to urge Labour leader Jeremy Corbyn to soften his party’s stance on Brexit, suggesting it should drop its insistence for Britain to leave the single market.
Mr Blair went on to urge the party to capture the centre-ground, but added: “I am not advocating a new party”.
EU and UK negotiators are set to meet on Monday for the next round of Brexit talks.
Britain’s exit liabilities - estimated by the bloc to be around £87.56 billion (€100 billion) - remains a hot topic on the agenda.
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With the country set for a March 2019 exit, negotiators on both sides of the table fear a financial stand-off would waste valuable time, and could end up delaying the start of trade talks.
While Britain has not yet submitted a position paper on financial issues, Foreign Secretary Boris Johnson said the EU can “go whistle” if it insists on “extortionate sums”.
In response, Michael Barnier - the EU’s chief negotiator - said: “I’m not hearing any whistling, just the clock ticking.”
Mr Barnier went on to warn Britain that talks are likely to stall unless Britain accepts that it has legally binding financial commitments to face up to post-Brexit.
Baroness Anelay’s written statement to parliament, which was released on Thursday, said: “On the financial settlement, as set out in the prime minister’s [Article 50 letter] the Government has been clear that we will work with the EU to determine a fair settlement of the UK’s rights and obligations as a departing member state, in accordance with the law and in the spirit of our continuing partnership.
“The Government recognises that the UK has obligations to the EU, and the EU obligations to the UK, that will survive the UK’s withdrawal — and that these need to be resolved.”
Experts were quick to point out that while Britain sees the statement as an effort to improve the tone of talks, rather than as a concession of substance, the EU sees its strongest legal claim being the so-called reste à liquider - the backlog of unpaid commitments made by the UK in annual EU budget rounds.
If Britain accepted that, negotiators estimate it would amount to £28.02 billion (€32 billion) gross and £17.5 billion (€20 billion) net at the end of 2019.
Long-term liabilities such as pensions would add a further £8.75 billion (€10 billion), according to EU officials.
The conceding statement from Britain comes just months after both Mr Barnier and Jean-Claude Juncker - the European Commission president - were left speechless during a dinner where Mrs May asserted that Britain had no legal obligation to settle financial matters when it left the union.