UK rejection of ˆ60bn Brexit bill would hurt EU's credit rating - S&P

UK rejection of ˆ60bn Brexit bill would hurt EU's credit rating - S&P

The European Union's credit rating could be downgraded if the UK refuses to pay the ˆ60 billion obligation in the course of implementing the country's exit from the bloc, warns Standard & Poor's. TrendsBrexit

“The EU ratings could come under pressure in an adverse scenario. This is because our ratings on the EU are to a certain extent predicated on our expectation that the UK would honor its share of financial obligations to the EU,” S&P said in a report seen by the Telegraph.

EU officials are not only demanding Britain pay ˆ60 billion as it quits the bloc but insist a settlement of the issue should be reached before any other stages of Brexit negotiations can start.

The so-called divorce bill is aimed at covering the costs of significant pension contributions and financial liabilities, according to Brussels.

The warning issued by the agency will reportedly make the EU even more steadfast when it comes to the matter, as it reveals the risks the bloc may face in case of a hard Brexit.

The EU has an AA credit rating, the second highest awarded by S&P. Previously the EU enjoyed the highest AAA rating but was downgraded shortly after the results of the UK referendum.

EU may have to pay Britain to leave if Brexit ministers get their way https://t.co/DBWT9bJzxZ#brexitpic.twitter.com/ConRg0zqHD

— Voice of Reason (@VoiceofReason10) April 3, 2017

“After the decision by the UK electorate to leave the EU, we have reassessed our opinion of cohesion within the EU, which we now consider to be a neutral rather than positive rating factor,” S&P said at the time.

British officials said the UK was ready to pay a settlement to the EU but the demanded sum was too high.

The S&P warning came after the claim by an influential Lords' committee that Britain is not legally obliged to pay Brussels any compensation.

Long-term, stable alternative: Central banks ditching euro for pound sterling https://t.co/PNJ9dR3Qrdpic.twitter.com/hvyxr5INPh

— Watchmanz (@Watchmanz) April 4, 2017

“This is being presented in a binary way as a divorce bill, in which we owe them. It's not like that. It's more like leaving a gym or a club. You don't continue to pay for other people to use the facilities after you leave,” an unnamed government source said as quoted by the Telegraph.



Add Comment

all comments

  Other news

more
Thousands protest across US on Trump’s 100th day in office (PHOTOS, VIDEOS)

Thousands protest across US on Trump’s 100th day in office (PHOTOS, VIDEOS)..

29-Apr, 20:50

Thousands of people took to the streets in Washington to protest Donald...

Kendall Jenner bares her boobs as she poses TOPLESS for sexiest selfie yet wearing just a pair of thigh-high boots as she faces backlash over cancelled Fyre Festival weeks after Pepsi ad controversy

Kendall Jenner bares her boobs as she poses TOPLESS for sexiest selfie yet wearing just a pair..

29-Apr, 16:38

With just her arm protecting her modesty, the Victoria’s Secret model...

British 'Syria fighter' Josh Walker accused of terror offences

British 'Syria fighter' Josh Walker accused of terror offences..

29-Apr, 14:25

A British man who allegedly fought against so-called Islamic State in...

Russian authorities detain dozens at anti-Putin rallies

Russian authorities detain dozens at anti-Putin rallies..

29-Apr, 11:40

Russian authorities have detained dozens of protesters at rallies...

Egypt Bans Top Human Rights Lawyer From Travel Abroad

Egypt Bans Top Human Rights Lawyer From Travel Abroad..

26-Jan, 10:04

A prominent Egyptian human rights lawyer says he has been banned from...

Pistorius Prosecutor Quits, Plans Anti-Corruption Role

Pistorius Prosecutor Quits, Plans Anti-Corruption Role..

31-Jan, 09:56

The South African state prosecutor who led the case against convicted...

Campaigning candidates consider France's wartime past

Campaigning candidates consider France's wartime past..

28-Apr, 06:00

France's troubled wartime past is taking center stage Friday in the...

Secrets Of Nature Episode 249

Secrets Of Nature Episode 249..

13-Mar, 08:52

The following Secrets Of Nature Episode 249 English Sub has been...