Big di­vorce is go­ing to cost the Brits ‘big time’

The Star Early Edition - - BUSINESS REPORT - Sput­nik

THE UK IS ready to pay the EU up to £36 bil­lion (R630bn) in ac­cor­dance with Lon­don’s fi­nan­cial obli­ga­tions which are a re­sult of its EU mem­ber­ship, lo­cal me­dia re­ported on Satur­day cit­ing gov­ern­ment sources.

Ac­cord­ing to The Tele­graph news­pa­per, such an of­fer is the only way out from the cur­rent dead­lock in Brexit ne­go­ti­a­tions with Brus­sels.

Lon­don is ready to pay this sum if Brus­sels agrees to ne­go­ti­ate the fi­nan­cial set­tle­ment as part of an agree­ment on fu­ture UK’s re­la­tions with the bloc, in­clud­ing a trade deal, White­hall sources told the me­dia out­let.

In May, The Fi­nan­cial Times news­pa­per re­ported that the EU had in­creased its de­mands re­gard­ing the UK’s fi­nan­cial obli­ga­tions up to some $109bn (R1.46 tril­lion), com­pared to some $64bn an­nounced by Euro­pean Com­mis­sion Pres­i­dent Jean-Claude Juncker in early March.

UK Brexit Sec­re­tary David Davis then said that Lon­don may with­draw from Brexit talks with the EU if Brus­sels re­tains its re­quire­ment for the United King­dom to pay over $109bn. How­ever, Brus­sels has not sub­mit­ted its fi­nal de­mand yet.

UK For­eign Sec­re­tary Boris John­son said in July that the amount of money the EU could de­mand from the United King­dom as a Brexit di­vorce pay­ment was “ex­tor­tion­ate.”

An­other source con­firmed to the me­dia out­let that the fi­nal sum of the deal amounts to $35 to $47bn.

Brexit ne­go­ti­a­tions started of­fi­cially on June 19 in Brus­sels.

Boris John­son said in July that the amount of money for a Brexit di­vorce was “ex­tor­tion­ate”.

PHOTO: REUTERS

Bri­tain’s Sec­re­tary of State for leav­ing the EU David Davis.

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