��The implications of Brexit for the EU Economy -- How it will be more Co...

The implications of Brexit for the EU Economy -- How it will be more Costly than Initially Believed - 2,754 views - Premiered 11 hours ago

The farewell of the United Kingdom to the European Union will cause the Member States significant problems in terms of the EU budget. In fact, although during 2020 Britain will continue to pay its share of 16 billion euros into the coffers of the Union, by 2021, the situation will change. Not only will a new political agreement have to be found for the 2021-2027 budget, but also to understand how the budget hole left by Britain will be managed.

To seriously suggest that Brexit will have little to no effect on the EU is  merely astonishing. It completely ignores elementary facts of the geopolitical and economic structure and dynamics of the EU.

In fact the EU 27 post-Brexit, will have  to find 10% of the EU budget amongst the members ; assuming the EU chooses not to cut spending anywhere. For 2020, the budget allocated has been 168.7 billion euros.

The UK pays 16 billion (9.5%).

 It should be remembered that the total sum of the EU budget is spread in different percentages between the various member states. Italy for example is one of the major contributors, ranking fourth. Ahead of it, there is only Germany, France, and Great Britain. But given that one of the most important contributing states, Great Britain, will leave the European Union, how will then the 16 billion euros that Britain paid be covered.

The answer lies in the remaining 27 Member States. But be careful, because the issue is not the simplest. Those who will suffer the most considerable consequences will probably be Germany, France, and Italy, namely the countries that contribute the most to the EU budget.

According to the study The impact of Brexit in the Eu budget, published by the Ceps policy brief, a research center specializing in European affairs, which based its simulation on the 2014 EU budget (lower than that of 2020), to cover the budget hole left by the UK; Germany will have to increase its contribution by 2.56 billion euros (+ 9%); France by 1.47 billion euros (+7%) and Italy of 791 million euros (+ 5.22%).  These sums, however, are variable and not definitive for two reasons. First of all, it is necessary to understand from the point of view of the single market at a commercial level what will be decided. And the next few months will be crucial in this.

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