UK - EU Agree on 'Divorce' Settlement!

The UK has finally agreed a financial post-Brexit settlement with the EU, with an undertaking to pay a fixed share of EU budgetary contributions up until 2020.

According to Reuters, a senior EU negotiator advised that a deal had been made in principle and that agreement should be reached on 2 other key divorce conditions prior to a crunch meeting on Monday.

The EU official stated that "the official offer has not been submitted, but it has been agreed to the extent that everything will be OK, barring a last minute turnaround from either side".

Overall, the EU side was "optimistic" that agreement could be reached on all conditions, paving the way for the UK and EU to open talks on post-Brexit relations.

The British government dismissed as "speculation" reports in some British newspapers that it had more than doubled its original offer to the EU to nearly 50 billion euros.

The EU official said that a precise settlement value had not been discussed as future payments were dependent on imprecise variables, such as loan guarantee agreements, Sterling –Euro exchange rates and relative growth of both the UK and EU economies.

The UK's share of contribution to the EU budget in 2016 was 16% - this post-Brexit settlement means that future contributions (up until 2020) will be significantly less than this.

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