Just What Will the Financial Cost of Brexit Be?

Brexit wasn’t supposed to come easy. Many pro-stay citizens experienced a meltdown when the final vote supported a divorce between the UK and the EU. Now, when Article 50 has finally been initiated, it makes sense to think about all the possibilities for the UK. The union remains undivided about their treatment of the UK and they maintain a stern outlook. This is essential as many right wing separatist forces are rising in different European nations. If UK is not dealt with a strict hand, the dismantling of the EU will begin sooner than later.

Brexit Torn Flag

EU’s Plan Is Big and Punitive

 

The Brexit bill could easily cost UK about a 100 billion euros and this is just the beginning. German and French demands have been growing, leading to this opening price. Earlier, the UK liabilities were considered to be much lower, almost half of today’s estimations. However, as EU members met last weekend to discuss Brexit, they hold the UK liable for more payments. Britain, after the negotiations are complete will leave the union in 2020. Till then, it will have to pay for EU administration fees and farm subsidies as well.

We need to subtract the UK’s rebate in this process which will bring down the cost significantly lower. However, the sum will still be higher than the initial 60-billion-euro price suggested by the European commission. It would be a hard Brexit, one that brings a punitive point of view from the bloc. Germany does not wish to share the assets of the EU with UK. On the other hand, Poland and France have suggested keeping UK’s farm subsidies running even after Brexit. The final divorce bill for the UK has not been arrived at yet. This is because estimates can only be made on the official date of Brexit i.e. 29 March 2019. The leaders could provide UK an extension which leaves us with mere speculations for now.

Gossips Galore

 

German Chancellor Angela Merkel recently said that some people are under an illusion about Brexit. She said it was a ‘waste of time’. She added that the country could no longer enjoy the same rights as members and cannot become a third-party state. If grapevine gossip is to be believed, it is related to PM May, who was earlier quoted as ‘delusional’. May response was that she is a ‘bloody difficult woman’.

There is no shortage of Brexit supporters who believe that the UK will get away easily from the EU. On the other hand, May is under severe pressure to prove her mettle. Some urge her to repeat the performance of Margaret Thatcher and secure bigger rebates for the UK. Amidst controversy, growing top leadership tension and more, Brexit will be a difficult event. The effect on EU will be as great as the UK.