- Until the end of the transition period on December 31, 2020, the United Kingdom will continue to contribute to the E.U. budget.
- After Brexit, the U.K. will no longer be obliged to provide financial assistance to other Euro countries, either directly or indirectly.
- After Brexit, the U.K. will be free to enter into trade deals with other nations and regional organizations and introduce its own rules.
After a series of lengthy debates at the European Union level, and in the British House of Commons, a whole series of votes and early elections, Brexit is now in its transition period, which will last another eleven months. On the night of January 31, the treaty came into effect, and Britain exited the E.U. as a member state. There is a lot of discussion and speculation about the changes to expect, and the possible adverse effects. But what advantages do Brexit supporters see?
The Membership Fee
So far, the British, like all other member states of the European Union, have contributed to the E.U. budget. U.K. government documents show that Britain’s contributions to the E.U. budget, is approximately £7.7 billion from 2014 to 2018. Until the end of the transition period on December 31, 2020, the United Kingdom will continue to contribute to the E.U. budget.
To this end, there will be some final payments, the so-called “financial settlement”. After that, this financial obligation for Great Britain ceases to apply. Brexit supporters hope that the funds will be distributed differently. The money can, for example, be injected into the British healthcare system.
Unlike the majority of the E.U. member states, Britain has never used the Euro as its national currency. Many Eurosceptics see the common currency as a source of financial problems within the alliance. It is believed to have brought additional costs to Britain as a non-Euro country to the tune of billions in exchange rate surcharges.
Following the economic crisis in 2008, many E.U. countries were affected. The union subsequently agreed to contribute bailout funds. Britain additionally contributed directly to Ireland’s financial aid. After Brexit, the U.K. will no longer be obliged to provide financial assistance to other Euro countries, either directly or indirectly.
As a member of the European Union, Britain was previously bound by its trade agreements and the laws of the internal market. After Brexit, the U.K. will be free to enter into trade deals with other nations and regional organizations and introduce its own rules. Brexit supporters hope that this will boost the British economy.
Prominent Brexit supporters such as Nigel Farage and Prime Minister Boris Johnson have already spoken about possible future trade relations with the E.U. in the run-up to Brexit. Accordingly, the country could introduce a contract-based model covering E.U. trade relations such as the one between the organization and Canada. Negotiations on such concessions are to be conducted in the transition phase, which will end on December 31, 2020.
British Prime Minister has spoken about this prospect stating, “the choice is emphatically not ‘deal or no deal’. The question is whether we agree on a trading relationship with the E.U. comparable to Canada’s – or more like Australia’s. In either case, I have no doubt that Britain will prosper. And of course our new relationship with our closest neighbors will range far beyond trade.”