Saturday, June 25, 2016

Brexit: Europe yet not so expensive cost UK – Le Figaro

THE ECO SCAN – The UK was not the biggest contributor to the EU budget: the country since 1984 benefited from a discount. And he received substantial European aid. In the end, our neighbors were paying only 0.23% of their income for Europe. The budget of the European Union husked graphic.

As Europe turns a page in its history, and the immediate reactions fuse, thousands of questions arise. Among them: what was the UK’s contribution to the EU budget? How the country was receiving from the Old Continent? Is that because of Brexit, France will pay more to the EU? Responses, interactive graphics.

• A European budget of 162 billion euros in 2015

The annual budget of the European Union (EU) amounted to 162 billion euros in 2015 (after 143 billion in 2014). There will be 155 billion euros in 2016. This amount is high in absolute terms, only about 1% of the wealth produced annually by the member countries of the EU.



Ce budget is mainly used to support growth and employment (46% of the budget). It is also devoted in large part to agriculture and rural development. It is used for example to improve the interconnection of transport networks, energy and communications or helping European researchers and scientists to collaborate. Operating costs amounted to about 6% of the overall budget.

• The UK, 4th contributor to the EU budget

In 2014, the European budget was funded 81% (116.5 billion euros) by contributions from Member States, calculated based on gross national income. The rest comes from customs duties on imports from outside the European Union, the “sugar” contributions and a small part of the value added tax (VAT) collected in the Union.

it is Germany (€ 25.9 billion or 22.2% of the EU budget) that contributes the most in value to the EU budget, followed by France (19.5 billion 16.8%) and Italy (14.4 billion or 12.3%).

• But Europe poured it 6.4 billion in the UK

France is the second largest recipient in volume of European expenditure (12.4 billion, or 10.6% of total expenditures), after Poland (17.3 billion or 14.8%) and ahead of Spain (11 billion or 9.5%).

• A negative budget balance for the UK

as countries pay money to Europe to them in reverse. So, for some of them, the fiscal balance -the difference between what they received and what they pay- positive. This is the case for the Poland , which received in 2014 nearly 14 billion euros, far before the Hungary and Greece , recovering over $ 5 billion.

On the other side of the scale, “big” countries pay more than they receive under European solidarity. And the Germany Is in ‘deficit’ Solidarity 15 billion euros, followed by France (7.2 billion euros) and the UK (5 billion euros).

• However, related to the income of the country, the deficit is very low

But based on the “power” of the country, orders are changing. So this is actually the Hungary that benefits the most, followed by Bulgaria , the Lithuania then the Poland . However, these are the Netherlands the weight of European solidarity is the highest, followed by the Sweden , the Germany and Finland . France is in 7th place, and UK 10th.

In the end, the European budget cost only 0.23% in the UK.

• In 1984, Margaret Thatcher negotiated a François Mitterand discount

“I want my money back.” Came to power in 1979, Margaret Thatcher repeated that Europe was costing too much and did not bring him enough, threatening to leave Europe. She won the case in June 1984: it is François Mitterrand who, at a summit in Fontainebleau, managed to convince European leaders to accept the famous “rebate” on the final bill of the British. The “big” EU countries therefore would therefore pay two thirds of the “deficit” in the UK. In 2015, the rating was 6.1 billion euro.

• It was France who paid the most to fund this discount

in 2015, France has paid 1.6 billion euros as part of this 32-year-old agreement. What makes the Hexagon the biggest European contributor countries that is also called the “British contribution.” For since, other countries also got a discount, such as Germany, Sweden, Austria and the Netherlands (but not France). What has mechanically increased the share of France in the English contribution.

In December 2012, François Hollande had requested a contribution limits of the Hexagon kickbacks from its neighbors. In vain.

• With Brexit, the United Kingdom did he pay so nothing more to Europe?

It ‘ is not so sure. Everything depends on the following: the UK will he completely leave the European Union? Will it continue to belong to the EEA, the European Economic Area? Some non-member countries of the European Union have indeed maintained economic ties with Europe: the case of Norway and Switzerland. They are “associate members” and therefore enjoy the benefits of the single market and benefit from EU aid. In return, they pay a contribution … to the EU budget.

• With Brexit, France will she have to pay more in Europe?

unless the EU budget decrease the amount the UK was pouring, France and other member countries of the EU will compensate the “deadweight loss” of the British contribution. But those who were financing the UK rebate “may emerge winners from a budgetary point of view of an exit from the UK,” calculated the French Senate recently. Like France. Nothing to jump up if the UK remains in the EEA, and thus contributes to the EU budget (without discounts, obviously), the Senate believes that France would save … 200 million.

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