Britain’s exit from the EU will cost Germany billions: EU report

According to a study by the EU, which has been published by the Funke Mediengruppe, Germany will have to increase its contribution to the EU budget by €3.8 billion annually after the UK leaves.

Britain’s exit from the EU will cost Germany billions: EU report
Photo: DPA

The additional costs will add up to a 16 percent increase in Germany’s annual contribution to EU finances, the report predicts.

“Brexit doesn’t just increase the financial weight on the other 27 EU members, it also changes how the contributions will be divided up,” the report continues.

Germany, along with the Netherlands and Sweden currently benefits from a reduction in its contributions, which were agreed along with the UK rebate in 1984. With the UK leaving the EU, this rebate for Germany will cease to exist.

According to the report, France will have to pay €1.2 billion more per year into the EU budget, while Italy will face an extra €1 billion in contributions after Brexit.

Germany currently pays around €14 billion into the EU budget once its rebate has been deducted. France pays between €5 billion and €6 billion into the kitty.

How much each country finally pays into the EU budget will depend on whether Brussels decides to pursue austerity policies as a result of Brexit or whether it introduces new taxes.