The Hindu Business Line

‘Brexit entails Budget cuts for rest of the bloc’

- BLOOMBERG

Without Britain’s contributi­ons, the remaining European Union members will need to get by on a smaller budget, according to Denmark.

No one, including Germany, wants to fill the €7.6-billion ($7.9 billion) hole that will be left once Britain – a net contributo­r to the EU – leaves the bloc, Danish Finance Minister Kristian Jensen said in an interview on Friday.

“The EU cannot continue spending the same amount of money when one of the largest contributo­rs leaves,” said Jensen.

The comments offer a preview of the bitter talks ahead on a key challenge facing the EU once Britain exits. The bloc has operated with an annual budget of about €140 billion, an amount agreed every seven years after government­s fight over everything from agricultur­e subsidies to research support.

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