Originally Posted by
Solasch
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The deal boris negotiated contains the same financial arrangement. Logically.
What is included in the settlement?
Broadly speaking, the settlement can be split into three components:
• During the transition period, until 2020, the UK will pay into the EU budget
almost as if it were a Member State. The UK will also receive funding from EU
programmes – such as structural funding – as if it were a Member State.
• EU annual budgets commit to some future spending without making payments to
recipients at the time. The commitments will become payments in the future. The
UK will contribute towards the EU’s outstanding commitments as at 31
December 2020. Recipients in the UK will also receive funding for outstanding
commitments made to them.
• The UK will share the financing of some EU liabilities as at the end of 2020, and
any materialising contingent liabilities, and will receive back a share of some
assets. The pensions of EU staff are likely to be the most significant liabilities for the
UK, while the most significant item being returned to the UK is the capital it paid
into the European Investment Bank (EIB).
Not everything in the settlement fits neatly into these three components. For instance, the
UK has agreed to continue to contribute to the EU’s main overseas aid programme – the
European Development Fund – until the current programme ends. This programme is funded directly by Member States, rather than through the EU budget. The UK’s
contribution counts towards its commitment to spend 0.7% of national income on
overseas aid.
The Office for Budget Responsibility (OBR) – the UK’s public finances watchdog – expect
that the UK will make payments
into the 2060s, with around 70% of the cost coming in
the first 4 years.