Study Finds Brexit Will Cost Germany Extra €3.8 Billion Annually

by NEE

german chancellor angel merkel claims germany invests ten times more in the us than the us invests in germany

EU Study Finds Brexit Will Cost Germany Extra €3.8 Billion Annually

A new study conducted by the European Union, and published by the Funke Mediengruppe, finds that Britain’s withdrawal from the EU will cost Germany an extra €3.8 billion per year in EU financial contributions.

This represents a 16 percent increase in Germany’s net yearly contribution of €15.6 billion.

The report notes that “Brexit doesn’t just increase the financial weight on the other 27 EU members, it also changes how the contributions will be divided up”.

For example, Germany, along with the Netherlands and Sweden, currently benefits from a 1984 agreement with the UK which provided them with a de facto rebate—Britain picked up a greater share of the tab.

The report also states that France will have to pay €1.2 billion annually into the EU budget—a ~20 percent increase.

Likewise, Italy will be on the hook for an additional €1 billion annually post-Brexit.

Article Continues Below

Of course, the final figures are subject to revision pending increasing austerity measures, but the fact of the matter is that the increase will be significant.  Britain, along with Germany, led the continent in economic growth, and without them Germany will be left to cover the costs.

From Britain’s perspective things are looking up: not only will they save nearly £9 billion annually, but British workers will benefit greatly from labor constrictions, as cheap EU laborers leave the nation—wages will rise, working conditions will improve for native Britons.

This is already happening: according to a report by the Recruitment and Employment Confederation:

A sustained upturn in demand for staff and lower candidate availability [has] led to further increases in pay. . . Starting salaries rose sharply overall, with the rate of inflation quickening to its second-strongest since November 2015. . .

Growth in permanent staff placements remained robust at the start of the final quarter of 2017 [and] staff vacancies rose sharply for both permanent and temporary employment during October according to the report.

That is, since Brexit the emigration of foreigners from Britain has tightened-up Britain’s labor market.  This is good news for British workers, and for the country as a whole.

36 views

Follow IWB on Facebook and Twitter