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Relocation of EMA and EBA

Noticed a press release “Relocation of European Medicines Agency and European Banking Authority: agreement on the legal text” on the text of the regulations for the relocation of the European Medicines Agency (EMA) to Amsterdam, and of the European Banking Authority (EBA) to Paris which are currently based in London.

http://data.consilium.europa.eu/doc/document/ST-15263-2017-INIT/en/pdf

http://data.consilium.europa.eu/doc/document/ST-15264-2017-INIT/en/pdf

These documents contain the following paragraph(s):

For the EMA

4. BUDGETARY IMPLICATIONS

The relocation of the European Medicines Agency will have budgetary implications, in particular in view of the costs related to the early termination of its current rental contract in London as a consequence of the withdrawal, the costs related to the move itself and the costs related to the installation in the new premises in Amsterdam. As set out in the negotiation directives of the Council of 22 May 2017 for the negotiation of an agreement with the United Kingdom setting out the arrangements for its withdrawal from the European Union, the United Kingdom should fully cover the specific costs related to the withdrawal process, such as the relocation of the agencies based in the United Kingdom

and for the EBA

3. BUDGETARY IMPLICATIONS

The relocation of the European Banking Authority will have budgetary implications, in
particular in view of the costs related to the early termination of its current rental contract in
London as a consequence of the withdrawal, the costs related to the move itself and the costs
related to the installation in the new premises in Paris. As set out in the negotiation directives
of the Council of 22 May 2017 for the negotiation of an agreement with the United Kingdom
setting out the arrangements for its withdrawal from the European Union, the United
Kingdom should fully cover the specific costs related to the withdrawal process, such as the
relocation of the agencies based in the United Kingdom.

I cannot find any detail of this demand for payment mentioned anywhere in the Draft Withdrawal Agreement…

Actual Costs

by Politicker 0 Comments

EU budget explained: expenditure and contribution by member state.

Use the following page to check out this data

http://www.europarl.europa.eu/external/html/budgetataglance/default_en.html

We think it is important that EU taxpayers have a clear view of how EU money is spent and where it comes from. This tool has been designed to show this. It will help you to better understand the EU’s long-term budget, also known as the Multiannual Financial Framework, and how the situation in your country compares to the rest of the EU.

Figures from European Commission financial report(s)

2015

How much did the UK contribute to the EU Budget ?

How much did the EU spend in the UK ?

2016

How much did the UK contribute to the EU Budget ?

How much did the EU spend in the UK ?

How much does the UK owe the EU

It’s a complete nightmare trying to work out the current contributions to the EU budget by the UK and money spent in the UK from the EU budget. The question of payments to the EU arises yet again as all sorts of figures are being bandied about regarding the price demanded by the EU for payment by the UK, in order to leave the EU – a leaving tax if you like.

The deadlock over the price to be paid is being used by the EU to block discussions on a future trading relationship (although Article 50 does state …. the Union shall negotiate and conclude an agreement with that State, setting out the arrangements for its withdrawal, taking account of the framework for its future relationship with the Union).

The payment could also be interpreted as the cost of buying a trade deal with the EU.

In order to work out how much (if anything) the UK should pay the EU in order to leave the EU it is again necessary to look at current payments to and from the EU. I noticed an interesting interpretation of the contributions broken down on a country by country basis provided by the EU Parliament using actual data from 2015.

http://www.europarl.europa.eu/external/html/budgetataglance/default_en.html

We think it is important that EU taxpayers have a clear view of how EU money is spent and where it comes from. This tool has been designed to show this. It will help you to better understand the EU’s long-term budget, also known as the Multiannual Financial Framework, and how the situation in your country compares to the rest of the EU.

The figures are taken from the European Commission financial report for 2015

How much did the UK contribute to the EU Budget ?

How much did the EU spend in the UK ?

From this data, does it appear that the net amount paid to the EU was in fact around 21 billion Euro in 2015?

In 2015 the UK contributed €18.21 billion to the EU budget (after a rebate of €6.08 billion) and also collected €4.27 billion in customs and farm trade duties on the EU’s behalf, of which it retained 25%, as an administrative fee

There is more information regarding the “Exit Bill” in a Research Briefing from the House of Commons library available from

https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-8039

with the full report at

http://researchbriefings.files.parliament.uk/documents/CBP-8039/CBP-8039.pdf (pdf)

UPDATE 05 October 2018

The figures are taken from the European Commission financial report for 2016

How much did the UK contribute to the EU Budget ?

How much did the EU spend in the UK ?

How much does the UK pay to the EU (again)

by Politicker 0 Comments

Boris Johnson has recently stirred up (again) the issue of how much the UK pays towards the EU budget, repeating claims of £350M being sent to the EU every week.

I wrote about payments from the UK to the EU in an earlier article at

https://politick.co.uk/how-much-does-membership-of-the-eu-cost-the-uk/.

The latest figures, for 2016, have been published and presented to Parliament by the Chief Secretary to the Treasury and are available at

European Union Finances 2016 (pdf)

The following chart shows the contribution required from each member state towards the EU budget for 2016.

Note, that this is the 6th amendment Draft Amending Budget 6 to the 2016 Budget, European Commission to the budget and shows that the budget itself appears to be in a constant state of flux. Also note that the calculationn of the rebate for the UK can be adjusted for up to 4 years following the budget year.

It would be a lot easier to see what payments have actually been made if we had access to the UK’s Bank statement – this would settle the argument once and for all! Confused ? (you should be) just take a look at figures provided in the “official” document!

The following table shows the UK’s gross payments, rebate, public sector receipts and net public sector contributions to the EU Budget for calendar years 2010 to 2016. The figures for 2016 include estimates, those for earlier years are outturn 1

Figures from the EU Commission are in the following table

The EU financial year runs from 1 January to 31 December, whereas the UK’s runs from 1 April to 31 March. The following table gives a breakdown of the UK’s transactions with the EU on a financial year basis between 2010-11 and 2015-16.

The only thing thats seems to be clear is that:

The UK makes monthly payments to the EU.

The actual payment is equivalent to the Gross amount, less the rebate (from the previous year).

The payments made in 2016 would be (approximately)

£16,996,000,000 less £3,878,000,000 = £13,118.000,000

or just over £1 Billion monthly (£13,118,000,000 / 12 = £1.093,000,000)

or around £252,000,000 per week

or around £36,000,000 per day

or around £1,500,000 per hour

These figures do not take into consideration Public Sector payments received by the UK from the EU which would determine the overall net figure paid by the UK over the year.

Other points to note:

  • The rebate is deducted from the UK’s GNI-based contribution a year in arrears, e.g. the rebate in 2015 relates to UK payments and receipts in 2014
  • The Commission is directly and solely responsible for calculating the UK’s rebate. It calculates the rebate on the basis of a forecast of contributions to the EU Budget and the UK’s receipts from it. This is subsequently corrected in the light of outturn figures.
  • Corrections may be made for up to three years after the year in respect of which the rebate relates, with a final calculation then being made in the fourth year, e.g. a final calculation of the rebate in respect of 2015 will take place in 2019.
  • The effect of the rebate is to reduce the amount of the UK’s monthly GNI-based payments to the EU Budget. It does not involve any transfer of money from the Commission or other member states to the Exchequer.

Other references

The UK’s EU membership fee

EU expenditure and revenue 2014-2020 (European Commission)

Consolidated Annual Accounts of the European Union 2016 (pdf)

Notes:

  1. Outturn : The actual amounts, results etc. at the end of a period of activity, rather than those that were expected or calculated earlier

The UK’s contribution to the EU budget

A recent research briefing, dated 12 June 2017, is available from the House of Commons library and examines how much the UK contributes to the EU budget and how much it receives back.

http://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-7886

The actual net contribution figure made by the UK appears to depend on how the figures have been calculated as there are different ways measuring the funds the UK receives from the EU. This paper is based on figures from HM Treasury but also shows the EU Commissions calculation of the UK’s budget contribution.

The paper also mentions that the EU expects the UK to make a payment as part of the process of leaving the EU (the so called Exit Bill or Divorce Bill) to cover it’s ongoing share of the EU’s future financial committments and possible future access to the Single Market.

The legal position of the Exit Bill is somewhat uncertain with a Lords Committee stating:

On the basis of the legal opinions we have considered we conclude that, as a matter of EU law, Article 50 TEU [the Treaty on the European Union] allows the UK to leave the EU without being liable for outstanding financial obligations under the EU budget and related financial instruments, unless a withdrawal agreement is concluded which resolves this issue.

and the subject is also discussed elsewhere, for example an interesting article can be found on the Blog of the European Journal of International Law at

https://www.ejiltalk.org/the-brexit-bill-and-the-law-of-treaties/

The Exit Bill is scheduled as one of the initial items to be discussed in the opening rounds of the Brexit negotiations.

References:
An earlier guide to the EU Budget, dated January 2017, is also available from the House of Commons Library at

http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN06455

A Guide to the EU Budget (pdf)

The UK’s contribution to the EU Budget (pdf)

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