Brexit will have “quite a significant, but not devastating, impact on the EU budget,” a report by a Berlin-based think tank has found.<br /><br /> The paper by the Jacques Delors Institut, explores what would happen if, as British Prime Minister Theresa May has indicated, the UK withdraws its 10-billion-euro yearly contribution to the bloc.<br /><br /> Solutions?<br /><br /> It suggests there are two possible solutions to what it calls “the Brexit gap.”<br /><br /> Either, EU countries are asked to contribute a higher sum annually, to compensate.<br /><br /> Or, additional income could be generated through a ‘grand bargain’ scheme incorporating a joint overhaul of revenue and expenditure.<br /><br /> Impact<br /><br /> Budget increases could involve Germany paying 3.5 billion euros more on an annual basis, and France 1.5 billion more.<br /><br /> If the 10 billion euros were simply cut from the EU budget, it would be equivalent to:<br /><br /> – The entire EU foreign policy budget and its immigration, consumer protection and culture budgets combined.<br /><br /> – Or, its entire Horizon 2020 research funding programme, plus the asylum, migration and integration fund.<br /><br /> – Or a 20 percent cut in cohesion funds used to support development in poorer regions.<br /><br /> – Or a 20 percent cut in agricultural support.<br /><br /> The report finds that if a unanimous agreement is not reached, the budget would automatically be reduced.<br /><br /> Conclusion<br /><br /> Ultimately, the report concludes, whether Brexit is an opportunity or a threat to the EU “depends entirely on the member states.”<br />
