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all Brish imports). 184 billion € exports to the 27 EU
member countries ( = 44 % of all Brish exports).
For the three other largest economies of the EU (
Germany, France, Italy) Britain is for each one the third
largest export market ( 7,4 % of German exports; 7,0 %
of French exports; 5,4% of Italian exports ).
Thus, the 27 EU member countries have a trade surplus
of 117 billion € with Britain ( of which 42 billion €
is German surplus with Britain.). The 28 member
countries European Union has a budget 2015 of 145
billion €.
Over 80 % of this is financed by cash contribuons of
the member states as a % of their GDP.
Three quarters of the total budget are paid back to the
member countries as agriculture subsidies and other
structural reform investment subsidies.
The largest net payment Payer countries and the largest
net payment Receiver countries of the European Union
are the following:
The largest net payment Payer countries:
in million €, 2015
Germany 14.307
Britain 11.521 *)
France 5.523
Netherlands 3.695
Italy 2.600
Sweden 2.200
Belgium 1.388
Danmark 790
Luxemburg 94
The largest net payment Receiver countries:
in million €, 2015
Poland 9.483
Cech Republic 5.699
Roumania 5.154
Greece 4.934
Hungary 4.637
Bulgaria 2.279
Latvia 759
*) The number for Britain in 2014 was around 4.900
million €.
The 11.521 € for 2015 are exceponally high, due to a
div
ersity of special effects, dang back several years and
leading finally to cash payments in 2015.
Both numbers for Britain for 2014 and 2015 are lower,
annually, by 6.100 million €, due to the annual Brish
Rebate, which then Prime Minister Margaret Thatcher
negoated, as a compromise selement, with the
European Union ( Original request “We want our money
back!”).
Brexit: Consequences - Economic and Business
Immediate consequence, is uncertainty:
- about how quickly or how slowly the Brexit will be
put into pracce. There is daily speculaon about this
in the media. The expectaon now is, that the Brish
government will formally declare to leave the European
Union during the course of 2017, and from that date
on as per arcle 50 of the EU the maximum 2 year
negoaon period with the European Union starts,
about how the terms of the separaon are going to be.
Should no agreement be reached, then the separaon
as per the EU arcles takes place without an agreement.
- about which instuonal form the Brexit will take
- about how friendly or unfriendly the separaon
process will be
- about how the future co-existence of the now smaller
European Union and Britain will look like..
Is also confidence that there will be connued trade
between the now smaller European Union and Britain,
though possibly at a smaller scale, that there will be
connued direct investment between the 2 areas,
though possibly on a smaller scale.
Is also the reality that the now smaller European
Union and the separated Britain will each be a smaller
economic power in the world context than when acng
together as one economic union, and thus each of the 2
will lose some of the aracveness for aracng foreign
direct investment and trade from outside Europe, than
before.
In summary, the immediate consequences are a mixed
bag of effects.
There is widespread consensus, that the Brexit,
economically, is neither a catastrophy nor an event of
happiness for all people impacted by it on both sides.
Economic consequences will be many and diverse ones.
Which model of co – existence between the now smaller
European Union and Britain will evolve?
There are 2 precedence cases to be observed for
comparison:
One: Norway
Two: Switzerland
To Norway:
Norway, together with Iceland, Liechtenstein and
Switzerland, is part of EFTA, the European Free Trade
Associaon, established in 1960.
Starng 1994, the 3 EFTA Member States Norway,
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