The Impact of Brexit on the EU Budget: A Non-Catastrophic Event

CEPS Policy Brief, No. 347

8 Pages Posted: 26 Oct 2016

See all articles by Jorge Nunez-Ferrer

Jorge Nunez-Ferrer

Centre for European Policy Studies (CEPS)

David Rinaldi

Centre for European Policy Studies (CEPS); Université Libre de Bruxelles - Institute for European Studies; Foundation for European Progressive Studies (FEPS)

Date Written: September 7, 2016

Abstract

Given that the UK is one of the largest economies in the Europe Union – with per capita income above the EU average and therefore a net contributor – there have been concerns that the country’s decision to leave the EU could strongly impact the EU budget. On closer scrutiny, however, this paper finds that the impact will be rather small due to the effects of the UK rebate and to the potential contribution the UK would be obliged to make as a condition to obtain access to the internal market. If the UK remains outside the internal market, tariff revenues would make up a considerable share of the ‘net loss’. On balance, the authors conclude that the financial savings for the UK would be negligible and the impact on member states would be manageable. They also note that the impact on the classification of regions in EU Cohesion Policy is projected to be minimal and the European Fund for Strategic Investments is not affected by changes in membership.

Keywords: EU budget, Brexit, UK, internal market

Suggested Citation

Nunez-Ferrer, Jorge and Rinaldi, David, The Impact of Brexit on the EU Budget: A Non-Catastrophic Event (September 7, 2016). CEPS Policy Brief, No. 347. Available at SSRN: https://ssrn.com/abstract=2859407

Jorge Nunez-Ferrer (Contact Author)

Centre for European Policy Studies (CEPS) ( email )

1 Place du Congres
Brussels, 1000
Belgium

David Rinaldi

Centre for European Policy Studies (CEPS) ( email )

1 Place du Congres, 1000
Brussels, 1000
Belgium

Université Libre de Bruxelles - Institute for European Studies ( email )

CP 132 Av FD Roosevelt 50
Brussels, Brussels 1050
Belgium

Foundation for European Progressive Studies (FEPS) ( email )

rue Montoyer 40
Brussels, 1000
Belgium

HOME PAGE: http://www.feps-europe.eu/en/david-rinaldi

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