A senior EU official has revealed to Reuters that EU and UK have reached the post-Brexit financial settlement. Under this settlement, London has agreed to pay a set portion of the budgets of the EU after UK exits the EU.
In the recent days, many reports had surfaced over UK offer. The work on the financial was underway, insisted the negotiators of the EU. Both the UK and EU are pushing to reach an accord on two other exit conditions prior to the crunch meeting next week.
As a part of the post-Brexit financial settlement, UK has agreed to meet a share of the huge budget items for future. This is as per the insistence of the EU. It outlines the percentage of the UK’s share in the budget and the items of the budget.
The key EU demand for the budget that the UK has agreed is to cover a share of costs from the EU budget. This is beyond the current 7 years EU budget that ends in 2020. The formula to calculate the share of UK in budgets is also agreed, as quoted by the Indian Express. Each cost head in the EU budget will be taken separately and the formula for share will be applied to it, revealed an EU official.
UK Prime Minister Theresa May had said that London would pay its complete share of the budget until the end of 2020. This is the point at which EU expects that the transition period would end. In this period the UK will effectively keep its entire obligation and most of its rights in the EU after Brexit is given effect in 2019 March. It will lose its vote on laws.
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