BRITAIN CAN QUIT EU FOR FREE
Ditching Brussels may not cost a penny, rule Lords
BRITAIN could walk away from the EU without having to pay a penny.
That was the conclusion of a House of Lords inquiry last night into the legal
basis of Brexit. British taxpayers cannot be forced to pay anything into the EU budget should Brexit talks break up without a deal, the Lords ruled.
They said international law will not oblige the country to continue contributing to Brussels coffers after we leave the EU.
The expert findings are a big boost to Theresa May, strengthening her hand when formal Brexit talks start later this month. And they are a hammer blow to senior Eurocrats who have demanded Britain be hit with a £50billion divorce bill as a punishment for leaving the bloc.
The legal opinion was delivered in a report from the Lords EU Financial Affairs Sub-Committee.
Its chairwoman, Baroness Falkner of Margravine, a Lib Dem peer, said: “The UK appears to have a strong legal position in respect of the EU budget post-Brexit.
“Even though we consider that the UK will not be legally obliged to pay in to the EU budget after Brexit, the issue will be a prominent factor in withdrawal negotiations.
“The Government will have to set the financial and political costs of making such payments against potential gains from other elements of the negotiations.
“The negotiations will be more than just a trial of strength. They will be about establishing a stable, cooperative and amicable relationship between the UK and the EU. This will not be possible without goodwill on both sides.”
Mrs May is expected to activate Article 50, formally starting the twoyear negotiation process, around March 15. She is determined to agree a trade deal with the EU by the end of the talks. And while she has accepted that some financial contributions to the Brussels budget may continue after Britain’s exit, she says the days of huge annual payments will be “over”.
In contrast, chief EU Brexit negotiator Michel Barnier is understood to want a £50billion exit fee.
Some diplomats have speculated that Britain’s annual payments to Brussels, which reached a net £10.8billion last year, could continue in return for favourable trade terms.
Peers on the sub-committee dismissed the size of the exit bill being discussed as “speculative”.
Individual EU states could try to launch legal actions against the UK for payments of alleged outstanding liabilities, the report said. But international law was “slow to litigate and hard to enforce”.
They also doubted whether any international court or tribunal would have jurisdiction in such a case.
The report was welcomed last night. Tory MP Jacob-Rees Mogg said: “The Lords EU committee has highly experienced legal advice so is worth listening to. This is obviously important for the negotiations and strengthens our position.”
Ukip’s Brexit spokesman Gerard Batten said: “The report confirms that Britain is under no legal obligation to continue to pay into the EU budget when we leave. I believe we will also be under no moral obligation to continue paying either.”
A Government spokesman said: “We welcome the significant contribution from the House of Lords to this important debate.”