Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Brexit: EU demands Britain pay divorce bill in euros not pounds

Leaked document reveals a tougher stance from the EU, which has already said Britain might have to pay 60 billion euros as a condition of exiting the bloc 

Charlotte England
Friday 21 April 2017 10:34 EDT
Comments
British Prime Minister, Theresa May, greets The President of the European Council, Donald Tusk
British Prime Minister, Theresa May, greets The President of the European Council, Donald Tusk (Getty)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Britain must settle its Brexit divorce bill in euros rather than pounds, the European Union has said.

Leaked documents suggest the EU has toughened its stance in recent weeks, diminishing Britain's hopes of striking a trade agreement before leaving the bloc.

"An orderly withdrawal of the United Kingdom from the Union requires settling the financial obligations undertaken before the withdrawal date," said a European Commission document seen by media organisations including AFP and Politico.

"The agreement should define the precise way in which these obligations will be calculated ... the obligations should be defined in euro," it added.

The document did not say how much the Brexit settlement might be but EU officials have previously put the figure at around 60 billion euros, while London puts the figure nearer 20 billion.

Forcing the country to pay liabilities in euros leaves Britain at the mercy of the currency markets at a time when the pound is particularly weak.

The leaked document, titled "Non Paper on key elements likely to feature in the draft negotiating directives", was drawn up for the European Commission which will conduct Brexit negotiations with Britain.

It covers in more detail the same ground outlined last month by EU president Donald Tusk in the European Council’s draft guidelines, which offered an indication of the bloc’s opening stance last month, in response to Prime Minister Theresa May's official 29 March notification that Britain was leaving the union.

Back in March, Mr Tusk stressed the EU will insist on agreeing the future of citizens in Britain and the Brexit bill first before considering London's demand for a free trade pact.

The Commission document reiterated that the EU plans to push for its citizens in Britain to enjoy their current rights for their whole lifetimes without a "cut off date", and for this to be enforced by the European court of justice.

The Commission wants a reciprocal deal for EU citizens in the UK and Brits elsewhere in the bloc.

The Brexit divorce settlement should not just be limited to workers, the paper said, and should also apply to family members who join citizens "at any point in time before/after the withdrawal date".

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in