Brexit Will Cost €100 Billion, But Britain Has No Plans to Pay the Bill

published on 05 May 2017
First it was €50 billion, then €60 billion, now it could actually be as much as €100 billion. Can it go any higher? That's how much Britain's divorce from the EU could cost the country, according to a Financial Times report. 

"Some have created the illusion that Brexit would have no material impact on our lives or that negotiations can be concluded quickly and painlessly. This is not the case," said EU's chief negotiator Michel Barnier. 

U.K. Brexit Secretary David Davis, however, was quick to dismiss the report, saying that "I know that's not where we'll end up." He's probably right. The initial payment may be somewhere around €100 billion, but could go down to between €25 billion and €65 billion after reimbursements from the EU, according to think tank Bruegel.

There are still many unknowns considering that the two sides have yet to kick off negotiations because of some early disputes. For one thing, British PM Theresa May said she wants to negotiate new trading relationships with the remaining EU members first, whereas the EU said that's off-limits until other points are cleared. Davis acknowledged that the negotiations are going to be really tough and complicated and even contemplated the idea that two sides would end the talks without an agreement. 

Photo: © Javen / Shutterstock


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