EU’s expansion plans continue and place the UK taxpayer at risk, despite Brexit

EU borrows another €3bn to spend on non-EU countries

The UK Government and UK Parliament had no say in any part of this new EU programme

Last week the EU Commission agreed Memoranda of Understanding (MoU) on €3bn of macro-financial assistance (MFA) programmes with eight non-EU countries, soon to be ten in total. One of the recipient countries isn’t even recognised by the United Nations as being a country at all.

Brexit Facts4EU.Org Summary

€3bn of new commitments by EU for non-EU countries

The sums agreed between the EU Commission, EU Council, and EU Parliament are as follows:-

(All amounts in millions of Euros)

The EU‘s stated policy

The agreements are with what the EU refers to as “enlargement and neighbourhood partners”, and add to a €23bn (£20bn) package of financial loans and grants already agreed since 2007 with six of these countries. The new money will be delivered under an “ongoing and swift implementation of these programmes” and the monies are expected to be disbursed by the end of this year.

Memoranda of Understanding with the remaining two countries – Bosnia and Herzegovina, and Tunisia – are underway and are expected to be signed shortly.

All of these countries are candidate or potential candidate countries for EU membership

To those who say “But we’re no longer in the EU so this doesn’t affect us”

The UK is still in the ‘Transition Period’ which was agreed to as part of the Withdrawal Agreement and which was signed by the Prime Minister in January of this year. The UK is therefore likely to be liable for its share of the risk, despite having no say or vote about this matter whatsoever.

The EU Council and EU Parliament has allowed the EU Commission to borrow this money

It always used to be the case that the EU Commission had to balance its books and could not borrow money. All this has now changed. Here is an excerpt from the actual EU 'Decision' that was passed in respect of the above monies.

“The Commission shall be empowered, on behalf of the Union, to borrow the necessary funds on the capital markets or from financial institutions and to on‐lend them to the partner. The loans shall have a maximum average maturity of 15 years.”
- Decision (EU) 2020/701 of The European Parliament and of The Council of 25 May 2020, taken from the Official Journal of the EU

British MPs reading this article should note that this EU expenditure is not something they were allowed to debate or vote on.

Observations

In the EU, rules and customs are there to be broken... unless it involves the UK

In the past the EU Commission was never allowed to finance its operations by incurring a common EU debt. In theory the Commission must balance its books – never spending more than it receives.

As with so many issues, however, when the EU wants to break its own rules it does. All it takes is a decision by the EU Council, rubber-stamped by the EU Parliament, as in this case. This marks the third case in which this has happened in recent years.

Is the UK really 'on the hook' over this new EU largesse?

We have been unable to obtain any official confirmation that the UK taxpayer is on the hook for the above disbursements to 10 non-EU countries. We strongly believe this to be the case, as the UK remains liable for all EU budget expenditure commitments until 31 December 2020 when it finally leaves the EU.

It has been suggested that the above monies cannot be considered part of the EU budget and therefore the UK should be exempt from paying. This is a dangerous argument.

Consider the €6.5bn special fund called "EU Facility for Refugees in Turkey". This is an off-budget fund devised after Angela Merkel opened Germany's doors in 2015 and 2016, precipitating over a million migrants to cross the EU's borders. By paying (and continuing to pay) money to Turkey, the EU hoped to stem the tide of migrants using that country to get into the EU.

In essence this was a Schengen problem, and the UK has an opt-out from Schengen. This did not stop the UK from paying for its percentage - agreed by David Cameron and then by Theresa May - even though there was no legal text compelling the UK to do so.

It's time to declare the EU in default of their own Withdrawal Agreement (WA)

Above is an example of €3bn of EU money being borrowed and disbursed, with the UK taxpayer likely to be liable, and without Boris Johnson even being allowed to be present at the EU Council meeting of 25 May 2020 where this was decided.

No other country in the world would have agreed to this nonsense. Given that the EU has not acted in good faith in the trade negotiations - as required under the Withdrawal Agreement (WA) signed by Mr Johnson - we consider the United Kingdom to be entitled under international law to repudiate it immediately. This is also the considered opinion of some lawyers highly-experienced in EU law, as we have previously reported.

Decades of wrangling and torment resulting from the consequences of the WA would be prevented and the savings will be immense.

Articles like this take a great deal of time to research and publish. Brexit Facts4EU.Org continues to be the most prolific researcher and publisher of Brexit information over the past five years. We can only continue with your help. Please don't assume other readers are doing this. Please make a donation today, using the quick and secure methods listed below this article. Thank you so much.

[ Sources: EU Commission | Confidential legal opinions obtained by us ] Politicians and journalists can contact us for details, as ever.

Brexit Facts4EU.Org, Tues 18 Aug 2020

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Reader Comments 12

1. nenryte , Tuesday, August 18, 2020, 06:59:

I wonder if there will ever again be a parliamentarian worthy of the title 'statesman'.

2. Michael B , Tuesday, August 18, 2020, 07:41:

Which is why Britain must leave under no deal and tare up the finance deal that Johnson signed with the EU! Britain will never be a sovereign country as long as we are financing the EU and its expansion that will serve no one but the richest 1 % at taxpayers expense. Isn't this the main reason we voted to leave in the first place!

3. Not4EU, London , Tuesday, August 18, 2020, 09:17:

It really is frightening the sheer number of financial commitments, that we're on the hook for, made in the light of the UK leaving the EU and the UK says...diddly squat.
Meanwhile, in an effort to keep our money rolling in and control of the UK via defence the Germans are quite open about it. "...Last month, she announced in EU parliamentary committees that during its term as EU Council President, Germany will seek to integrate the United Kingdom into the PESCO projects. Berlin views Norway similarly." https://campaignforanindepe...
The Govt really needs to stop governing by algorithm, think for themselves, remember WHY they were voted in with a large majority & act accordingly. All their insane algorithm & 'science' driven 'policies', all proved wildly innacurate, from the climate change scam to Chynavirus restriction of liberties and now the results of exams that were never taken, along with the best 'scientific advice' that vested interests can buy, they do not appear to be in control at all. These things are merely tools to reach a considered decision which includes a myriad of other intangible factors & should not just be blindly followed. 'Following the (paid for) science' is as weak an excuse as 'I was just following orders'. I am concerned that a similar 'computer says...' mindset is 'advising' on the best outcome (for the EU) achievable in the 'negotiations'.
The Govt were elected to govern in the interests of the UK and per a democratic mandate. Do it. Rip up the abominable WA & walk away or you will never be forgiven.

4. Sydney Ashurst , Tuesday, August 18, 2020, 12:40:

The Government are in a mess, on awarding exam results for exams not taken too many Conservative MP's are being politically correct like the opposition.
How can you allow teachers to hand out the marks and control when the children go back to school. I thought we elected a Conservative Government. Instead we got jelly babies, who take bad advice and then waffle.

5. Sydney Ashurst , Tuesday, August 18, 2020, 16:24:

Why are the Telegraphs Brussels Political correspondents still chuntering on about a level playing field and State aid. Most member States are reliant on aid from Brussels (the hub), and since Coronovirus the Council has thrown any pretext to a level playing field to the wind.
31st December cannot come soon enough.

6. Tony Harvey , Tuesday, August 18, 2020, 16:47:

It is time for us to grow a pair, we didn't agree with spending on non-EU countries it is time to vote with our feet tell them to stuff it we are being made to look like a laughing stock of the world

7. Barbara Jell , Tuesday, August 18, 2020, 22:37:

Why has comment 7 and link been removed??
REPLY: The comment was deleted for several reasons. 1.. He/she posted a link which we don't allow unless it is to a recognised source, as we don't have time to check each link. 2. We sometimes allow links from regular and trusted posters (such as you) but did not know this person. 3. In addition the link was so long that it distorted the appearance of the page for many people.

8. Peter A , Wednesday, August 19, 2020, 05:56:

I would like to understand what happens to the £ 39billion payable by the UK to the EU for past and current liabilities if there is no-deal exit.
Thanks
REPLY : Good question. We have covered this in the past as part of more wide-ranging articles but perhaps we should research and publish an article on this specific question. Would any other readers like us to do this?

9. Chay Plane , Wednesday, August 19, 2020, 08:52:

‼️We must leave on WTO terms‼️ This is what the UK voted for, if we are to get a deal that deal should ONLY be a FREE trade & nothing else🤞

10. W. Alkaway Essex UK , Wednesday, August 19, 2020, 09:09:

Why should we should stick to any rules made up by the EU bandits who don't even keep to their own Rule Book themselves? What's the worst they might do? Expel us from the EU? Bring it on! Stop trading with the UK? And shoot themselves in the foot by doing so? Come on British Government, take the legal advice and announce that the EU is in default of the Withdrawal Agreement. Only if this can be done solely as a matter of record, without interminable, time-wasting legal wrangling. At the end of 2020, we leave anyway. And, what's more, our side need to ping over our invoices - what the EU owe us financially. Now that would be interesting!

12 comments, page 1 of 2

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