Brexit: Financial Settlement

Lord Balfe Excerpts

Tuesday 11th September 2018 Lords Chamber

Asked by

[Lord Balfe]

To ask Her Majesty’s Government what assessment they have made of the extent to which the financial settlement agreed with the European Union will be justiciable, in part or whole, in European Union, national or international legal systems, in the event of the United Kingdom renouncing the agreement.

[Lord Balfe (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and draw attention to my entries in the register of interests.

[The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)]

My Lords, the Prime Minister has been clear that the financial settlement reflects the UK honouring our outstanding commitments made during the period of our membership. Our estimate, based on current assumptions, is that it will fall within the range of £35 billion to £39 billion. This settlement has been put forward within the context of an overall agreement, under Article 50, of the UK’s withdrawal, taking into account the future relationship.

[Lord Balfe]

I thank my noble friend the Minister for his Answer. Do HMG realise that while any doubt remains as to whether the debts owed to the EU 27 Governments will be honoured, no Minister or civil servant in any member state can contemplate the UK taking part in any other activities, such as Galileo, which might add to those liabilities and thus increase the debt that might not in the event be paid?

[Lord Callanan]

Of course we are committed to the financial settlement in the context of the withdrawal agreement, but if we do not have a withdrawal agreement, that commitment falls away.