Theresa May should NOT fall for EU divorce bill demands because it owes us £9.3billion — and must fork out for Brexit
The detailed analysis by the Conservative European Research Group says that the UK owes nothing
SENIOR Tories and top lawyers have piled pressure on Theresa May not to succumb to the EU’s multi-billion divorce bill demands - by revealing the ONLY legal basis for payments is a £9.3 billion refund to UK taxpayers.
A joint report by the Conservative European Research Group (ERG) and Lawyers for Britain has produced detailed legal analysis showing Britain owes nothing.
But Brussels owes us our 16 per cent share of cash reserves tied up in the European Investment Bank (EIB) - equivalent to €10.2 billion.
The EU is demanding Britain continues its £10 billion net contributions until the end of 2020 - 20 months after Brexit - in addition to paying vast sums of money for the EU’s pension liabilities.
But the 30-page report says there is “no credible legal argument” for the UK to contribute to this pension deficit. And if the EU did demand payment for pension liabilities, the UK should be entitled to its corresponding share of the EU’s assets - such as its vast property portfolio.
It also says there is no legal obligation on Britain to contribute to the EU’s budget after Brexit Day on March 29 2019.
But the EIB is a “different position” because the UK has paid up capital in the organisation and should be entitled to a refund - as well as its share of the accumulated reserves of the EIB.
The detailed study concludes: “Overall the UK should be entitled on exit to a net payment in its favour, corresponding approximately to the value of its capital invested in the EIB.”
The ERG chair Suella Fernandes said that 'the European Commission has no legal claim for a Brexit payment '
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Martin Howe QC blasted the EU’s legal position as “flimsy,” adding: “In law, we will owe no money at all to the EU when we leave, with some small items being more than cancelled out by the value of the UK’s shareholding in the European Investment Bank.
Tory MPs urged the Prime Minister to “stand firm and not be blackmailed into a multi-billion divorce bill”.
ERG chair Suella Fernandes said:“While the terms for Brexit will ultimately be a matter for negotiation, the fact that the European Commission has no legal claim for a Brexit payment is another very strong card in the UK’s favour.”