It's no wonder many politicians in the remaining 27 EU member states are dead against Brexit.
The EU must brace itself for a 'shock' when it comes to filling the hole in its budget left by Britain's €10billion (£8.5bn) a year contributions, a Brussels think-tank has warned.
The remaining 27 member states will have to decide whether to increase their share of budget contributions, cut spending or a combination of the two, the report said.
But the research by the Jacques Delors Institute warned there is 'no easy way to fill the "Brexit gap" of around €10billion per year'.
Overall, Britain's contribution to the EU is behind Germany, France, and Italy. However, on a net basis, Britain is the second largest contributor to the EU budget after Germany. Despite having similar sized economies, France receives around twice as much money from the EU budget as Britain does...
Brexit will deal a 'shock' to the EU's budget, Brussels think-tank warns as it says there is 'no easy way' to replace Britain's £8.5bn a year contributions
Without the UK, EU budget would face a 'permanent funding gap,' report warns
Member states will either have to increase their share of budget contributions or the EU will have to cut spending
'Brexit gap' could pit rich and poor nations against each other in a budget war
By Matt Dathan, Political Correspondent For Mailonline
18 January 2017
The EU must brace itself for a 'shock' when it comes to filling the hole in its budget left by Britain's €10billion (£8.5bn) a year contributions, a Brussels think-tank has warned.
The remaining 27 member states will have to decide whether to increase their share of budget contributions, cut spending or a combination of the two, the report said.
But the research by the Jacques Delors Institute warned there is 'no easy way to fill the "Brexit gap" of around €10billion per year'.
The remaining 27 member states will have to decide whether to increase their share of budget contributions, cut spending or a combination of the two, the report said. The current budget contributions each member state currently makes is pictured above, in billions. Overall, Britain's contribution to the EU is behind Germany, France, and Italy. However, on a net basis, Britain is the second largest contributor to the EU budget after Germany. Despite having similar sized economies, France receives around twice as much money from the EU budget as Britain does
It will pit rich and poor member states against each other in what could become a hostile budget war in the upcoming negotiations on the bloc's income, set for next year, the report said.
This prospect 'spells trouble' for the budget negotiations. Net contributors such as Germany, the Netherlands and Sweden have complained in the past at having to pay extra payments to subsidise nations such as Poland, Romania and Bulgaria.
The policy paper, titled 'Brexit and the EU Budget: Threat or Opportunity,' warns: 'It is clear that Brexit will deal a shock to the EU budget.'
It adds: 'Overall, we find that Brexit could have a quite significant, although not devastating, impact on the EU budget and would likely deepen the existing cleavage between ‘net contributors’ and ‘net recipients’.
The research by the Jacques Delors Institute warned there is 'no easy way to fill the "Brexit gap" of around €10 billion per year'
'This poses a number of tough challenges for the EU but could also support efforts to reform the current system.'
Detailing the scale of the hole in EU finances, the policy paper says: 'We estimate that the ‘Brexit gap’ in the budget would amount to approximately €10 billion per year.
'The EU Member States need to decide whether to adjust to this shortfall by (1) increasing national contributions, (2) cutting spending, or (3) a combination of the two. We draw up scenarios that illustrate the consequences of each option for individual countries.'
The EU must brace itself for a 'shock' when it comes to filling the hole in its budget left by Britain's €10billion (£8.5bn) a year contributions, a Brussels think-tank has warned.
The remaining 27 member states will have to decide whether to increase their share of budget contributions, cut spending or a combination of the two, the report said.
But the research by the Jacques Delors Institute warned there is 'no easy way to fill the "Brexit gap" of around €10billion per year'.
Overall, Britain's contribution to the EU is behind Germany, France, and Italy. However, on a net basis, Britain is the second largest contributor to the EU budget after Germany. Despite having similar sized economies, France receives around twice as much money from the EU budget as Britain does...
Brexit will deal a 'shock' to the EU's budget, Brussels think-tank warns as it says there is 'no easy way' to replace Britain's £8.5bn a year contributions
Without the UK, EU budget would face a 'permanent funding gap,' report warns
Member states will either have to increase their share of budget contributions or the EU will have to cut spending
'Brexit gap' could pit rich and poor nations against each other in a budget war
By Matt Dathan, Political Correspondent For Mailonline
18 January 2017
The EU must brace itself for a 'shock' when it comes to filling the hole in its budget left by Britain's €10billion (£8.5bn) a year contributions, a Brussels think-tank has warned.
The remaining 27 member states will have to decide whether to increase their share of budget contributions, cut spending or a combination of the two, the report said.
But the research by the Jacques Delors Institute warned there is 'no easy way to fill the "Brexit gap" of around €10billion per year'.
The remaining 27 member states will have to decide whether to increase their share of budget contributions, cut spending or a combination of the two, the report said. The current budget contributions each member state currently makes is pictured above, in billions. Overall, Britain's contribution to the EU is behind Germany, France, and Italy. However, on a net basis, Britain is the second largest contributor to the EU budget after Germany. Despite having similar sized economies, France receives around twice as much money from the EU budget as Britain does
It will pit rich and poor member states against each other in what could become a hostile budget war in the upcoming negotiations on the bloc's income, set for next year, the report said.
This prospect 'spells trouble' for the budget negotiations. Net contributors such as Germany, the Netherlands and Sweden have complained in the past at having to pay extra payments to subsidise nations such as Poland, Romania and Bulgaria.
The policy paper, titled 'Brexit and the EU Budget: Threat or Opportunity,' warns: 'It is clear that Brexit will deal a shock to the EU budget.'
It adds: 'Overall, we find that Brexit could have a quite significant, although not devastating, impact on the EU budget and would likely deepen the existing cleavage between ‘net contributors’ and ‘net recipients’.
The research by the Jacques Delors Institute warned there is 'no easy way to fill the "Brexit gap" of around €10 billion per year'
'This poses a number of tough challenges for the EU but could also support efforts to reform the current system.'
Detailing the scale of the hole in EU finances, the policy paper says: 'We estimate that the ‘Brexit gap’ in the budget would amount to approximately €10 billion per year.
'The EU Member States need to decide whether to adjust to this shortfall by (1) increasing national contributions, (2) cutting spending, or (3) a combination of the two. We draw up scenarios that illustrate the consequences of each option for individual countries.'
