Policy paper 183

Brexit and the EU budget: threat or opportunity?

This policy paper analyses the impact of Brexit on the EU budget. It draws up different scenarios on how the EU could adjust to the expected shortfall after Brexit and highlight the political implications of these different options.

                       The British decision to leave the European Union (EU) was influenced by the debate about the EU budget, but it is the opposite also true? Will British withdrawal have a decisive influence on the EU  budget ? In this policy paper, Jörg Haas, research fellow in our office in Germany, the Jacques Delors Institut – Berlin, and Eulalia Rubio, senior researcher on economic and social affairs, estima te how Brexit would impact the EU’s public finances. The authors draw up four scenarios that tline how the EU could react to the expected budget shortfall after Brexit and provide estimates of how the individual Member States might be affected by the different options. They analyse the political implications of these four scenarios for the upcoming negotiations about the next Multiannual Financial Framework (MFF), which will start in 2018.

Overall, the policy paper concludes that Brexit could have a quite significant, although not devastating, impact on the EU budget and would likely deepen the existing cleavage between ‘net contributors’ and ‘net recipients’. This poses a number of tough challenges for the EU but could also support efforts to reform the current system.

This policy paper is also available in href=”https://www.institutdelors.eu/media/brexitbudgetue-haasrubio-ijd-jan17.pdf?pdf=ok” title=”Brexit et budget de l’UE : menace ou opportunité ?”>French and href=”https://www.institutdelors.eu/media/brexiteubudget-haasrubio-jdi-jdib-jan17-de.pdf?pdf=ok” title=”Brexit und der EU-Haushalt: Gefahr oder Chance?”>German.