As the United Kingdom continues to navigate the complexities of Brexit and their withdrawal from the European Union, attention has turned to the Withdrawal Agreement and its many provisions. One of these provisions, Article 38, has become a point of contention and confusion for those following the negotiations. In this article, we’ll break down what Article 38 is, why it’s important, and what it could mean for the future of Brexit.
What is Article 38 of the Withdrawal Agreement?
Article 38 of the Withdrawal Agreement deals with the “Financial Provisions” of the UK’s withdrawal from the EU. Specifically, it deals with the UK’s financial obligations to the EU and how those obligations will be calculated and paid. The article reads as follows:
“The financial settlement provided for in this Agreement shall be paid in euro. To the extent that the United Kingdom has obligations outstanding under the EU budget for the years prior to 2021, the United Kingdom shall continue to contribute to and participate in the implementation of the Union annual budgets for the years in question as if it were a Member State. Such contributions shall be paid in euro.”
Why is Article 38 important?
Article 38 is important because it determines how much money the UK will owe the EU as part of their withdrawal agreement. The article requires the UK to pay its outstanding financial obligations to the EU, which are estimated to be between £35-39 billion, depending on the final terms of the agreement. This money is meant to cover the UK’s share of the EU’s budget for the years it was a member, as well as other financial obligations such as pensions for EU staff. The payment of these obligations is a key part of the UK’s withdrawal from the EU and has been a contentious issue in the negotiations.
What does Article 38 mean for the future of Brexit?
Article 38 is just one of many provisions in the Withdrawal Agreement, but it is a particularly important one. The payment of the UK’s financial obligations to the EU is a key part of the agreement and must be resolved before the UK can fully withdraw. The UK government has committed to paying these financial obligations, but the amount and timing of the payments are still being negotiated. The final terms of the agreement could affect the UK’s relationship with the EU moving forward, as well as its ability to negotiate future trade deals.
In conclusion, Article 38 of the Withdrawal Agreement deals with the UK’s financial obligations to the EU and is an important provision in the negotiations surrounding Brexit. It is crucial that the UK and the EU come to an agreement on the payment of these obligations in order to resolve one of the major sticking points of the withdrawal process. As negotiations continue, we will be watching closely to see how this provision is resolved and what it means for the future of the UK’s relationship with the European Union.