Brexit Implications on the Czech Republic via GNI Based Contributions to the EU Budget
Brexit Implications on the Czech Republic via GNI Based Contributions to the EU Budget

Author(s): Dušan Litva
Subject(s): Economic policy, EU-Accession / EU-DEvelopment
Published by: Masarykova univerzita nakladatelství
Keywords: Brexit; Czech Republic; European Union; GNI; contribution; budget; gap;
Summary/Abstract: After activation of Article 50 on 29th March 2017 Brexit will become reality within next 2 years with all its consequences and implications. UK was significant contributor to the EU budget with its net contribution of 11,2 billion Euro in 2015. Leaving EU will hence significantly reduced incomes to the EU budget. There are several options how to close this gap- increase contribution per each member state, decrease receipts per each country, define new revenue streams to the EU budget or simply reduce overall costs. Czech Republic is clearly net receiver of EU funds with its net positive position of 5,6 billion Euro in 2015. As Czech Republic is more receiving than contributing, choice of solution how to close Brexit gap will influence its current net position. Paper is studying all theoretical options and their impact on Czech Republic. Losses in net balance of Czech Republic due to Brexit might be in year 2020 from 0,2 to 0,9 bil. Euro according to different scenarios to close UK contribution gap. Relates study of OST EU estimated worsening of cumulative net position of Czech Republic due to Brexit vote till 2020 from 0,8 bil. Euro to 2,1 bil. Euro.

• Details
• Contents