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The possible impact of Brexit on the EU budget and CAP funding

Negotiations about the ‘Brexit bill’ or ‘financial settlement’ will determine the extent to which the UK pays its share of the financial obligations jointly undertaken by EU countries while the UK was member of the EU. What will be the amount of the bill? How will it affect the spending on the Common Agricultural Policy?

This note, by Eulalia Rubio, senior research fellow at the Jacques Delors Institute, and Jörg Haas, affiliate research fellow at the Jacques Delors Institute – Berlin, assesses possible consequences of Brexit for the EU budget and the Common Agricultural Policy. It discusses the importance of the ‘Brexit bill’ and the loss of the British net contribution. Furthermore, it describes how the EU budget and spending on the Common Agricultural Policy can be adjusted to the new situation and estimates how the different options would affect EU Member States and their net balances.
This document was requested by the European Parliament’s Committee on Agriculture and Rural Development. It was presented at the European Parliament on November 9th, 2017 during a workshop on “implications of ‘Brexit’ for the EU agri-food sector and the CAP: budgetary, trade and institutional issues”.

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