July 8 (Reuters) – The European Union says the United Kingdom is obliged to pay 47.5 billion. Euro ($ 56.2 billion) to the EU as part of its post-Brexit economic settlement.
The EU’s consolidated budget report for 2020 said the money was due under a series of articles agreed by both sides as part of the Brexit withdrawal agreement.
However, the UK Treasury insisted that the Brexit divorce settlement remained within its previous key range of € 40.74 billion to € 45.40 billion, the Financial Times reported late on Thursday. The Treasury Department did not immediately respond to a Reuters request for comment.
The amount of 47.5 billion euros is significantly higher than expected. The UK Office for Budget Responsibility (OBR) predicted in its financial and fiscal report in March 2018 that the bill would amount to 41.4 billion euros.
An initial amount of € 6.8 billion is due for payment in 2021, the EU’s consolidated budget report added with the remainder of the amount to be paid later.
A total of € 47.5 billion was mentioned in the report as “net receivables from the UK”.
A trade and co-operation agreement between Britain and the EU was signed in December after more than four years of fierce negotiations and long-standing mistrust, as Britain ended 47 years of EU membership.
On Tuesday, the European Union called on London to consider a Swiss veterinary agreement with Brussels on agri-food to end a series of sausages in the war for certain goods moving between Britain and the province of Northern Ireland. Read more
Tensions have grown over trade arrangements for Northern Ireland, especially for chilled meat, because the province’s open border with EU member Ireland is Britain’s only land border with the EU and its huge single market.
($ 1 = 0.8448 euros)
Reporting by Kanishka Singh in Bengaluru; Editing Chizu Nomiyama, Sonya Hepinstall and Richard Pullin
Our Standards: Thomson Reuters Trust Principles.