Home Brexit Greedy Brussels could impose NEW TAX on EU members post Brexit

Greedy Brussels could impose NEW TAX on EU members post Brexit

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According to a new study from former Italian Prime Minister and European Commissioner Mario Monti, Brexit “provides a unique window of opportunity to review how we measure the real costs and benefits of the EU”. Join today

Top EU bosses say the UK’s impending exit will force a change of tone of the budgetary debate, with calls to shake-up and simplify funding.

But many are concerned the idea could trigger funding wars, as countries argue over whose money it was in the first place.

And some claim European chiefs could try to sneak in a new EU tax to siphon off resources that should go straight to member governments.

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EU parliament building

The question of who pays the most into the EU has long been the most controversial topic in Brussels, sparking bitter rivalry every time a new budget has to be agreed.

In 1984, Margaret Thatcher agreed a UK-rebate, which saw London get back roughly two-thirds of its net contribution to the bloc.

Other EU member were then forced to pay in more, and in turn a “rebate on the rebate” was agreed – capping the contributions of Germany, the Netherlands, Sweden and Austria.

But Brexit is likely to bring an end to all that.

The UK’s departure will see the EU lose its annual €6billion contribution, meaning it has less cash to fund economic development, agricultural subsidies and scientific research across the continent.

So the bloc could be left with no choice but to enforce a shake-up of the rules and find new ways of bringing in some cash.

In the new report, Mr Monti’s 10-member group denounced a “long neglect of how the EU is financed”.

euro notes

They called for “simpler, more transparent, equitable and democratically accountable” ways of finding more so-called Own Resources for the EU – without increasing the overall budget.

But the options suggested – including an electricity tax, a carbon levy, a motor fuel levy or a share of taxes on corporate income – could kick up some complaints from member states.

Both Germany and the Netherlands have already voiced their opposition to any additional revenues beyond customs and the VAT slice to fund the EU, arguing such a move would breach their constitutions.

The study will be presented to a panel of EU finance ministers on January 27.

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