Germany crisis: Brexit hits home for EU as Berlin faces EYE-WATERING budget increase

Following the end of the year, the UK will cease to adhere to any EU regulations and will not pay into the budget, with Boris Johnson insisting there will be no extension to the current transition period. With the UK’s departure, the bloc faces a €75billion (£62billion) funding gap which now needs to be covered, the European Commission President has said.

Politico has reported Germany could be forced to pay 32.06 percent of the new budget in order to cover the UK’s exit.

Under the budget for 2021-2027, national contribution under the European Commission’s proposed sum for the Multiannual Financial Framework is €130.04billion (£108billion) annually for all EU countries.

This would increase contributions from EU countries by an extra €23billion per year (£19.2billion) than they already pay.

The budget will be announced next week following Council President, Charles Michel’s talks with other European leaders.

Mr Michel has already faced a struggle to win over certain countries to increase the budget.

Part of the “frugal five” along with Austria, Sweden, Denmark and Germany, Prime Minister of the Netherlands, Mark Rutte met with Mr Michel to discuss the budget but insisted he would not support an increase to their share.

Asked on the budget he said: “We are net payers and I don’t see why we have to pay more.”

Austrian Chancellor, Sebastian Kurz has also emphasised his opposition to an inflated budget and even threatened to use his veto.

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Ursula von der Leyen, the European Commission’s president, warned member states must come together to cover the financial shortfall.

She said: “As a Union of 27, we have fewer resources. It’s about €75 billion less for the whole seven-year period, but more common challenges that no member states can solve on their own.”

Within the EU, the UK was a net contributor, meaning it paid more than it received.

In budget figures for 2018, the UK paid a gross contribution of £13.2billion.

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The UK did receive £4.3billion of public service sector receipts but overall Britain paid a net contribution of £8.9billion.

Overall, the UK was one of the largest gross contributors to the budget along with France and Germany.

Hans Dahlgren, Sweden’s Europe minister, said: “We are missing the UK as a big player and a close partner in those talks.

“We have to work even harder to reach our objectives.”

A special summit will be held on February 20 to establish the budget.

While Germany could be forced to pay an increased share in the budget, it also experienced its weakest growth since 2013.

In figures released last month, Germany’s economy only grew by 0.6 percent last year.

Angela Merkel also suffered party turmoil this month following the announcement her protege, Annegret Kramp-Karrenbauer will not enter the race to take over from the Chancellor.

The CDU leader had been tipped to stand for Chancellor but party organisers revealed she wanted to “organise the process of the chancellor candidacy during summer, prepare the party for the future and then hand over the party chair”.

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