Today we find the EU is possibly facing one of the biggest financial crises since the 2016 financial crash. The EU now find themselves with a whopping £16 billion budget black hole since the U. K. upped and exited the EU bloc at the end of last January.
To top this off, the EU has been at loggerheads with each other over the MFF budget where all sides are refusing to cough up the funds needed to cover the black hole. The money they seek in this budget is to cover the U. K. s exit, EU expansion and a brand new EU army. This news comes after the two so called engines of Europe started going backwards in growth.
The smaller countries said they will also Refuse to pay a higher contribution to cover the black hole left by the U. K. as they can’t afford it. We also had Leo Varadkar saying the Irish would not accept this new Increase in contributions as Ireland would see that as a net drain and not a net gain in the subsidies coming back from the EU. One thing that this really does show is how the U. K. was the cash cow of the EU due to the British financial sector.
Something else occurred today and that was Iain Duncan Smith coming out labeling the EU as the poor man of the World. The U. K. is a nation which is equivalent to 18 smaller EU countries literally standing up and walking out. This shows that we really do have the whip hand in these coming negotiations.
Something else which has been devastating for the EU and that’s Boris Johnson’s outright refusal to commit to a level playing field, this has meant the EU has no assured legal standing when it comes to throwing demands around.
They (EU) are terrified that the U.K. will find better trade deals elsewhere and like IDS said… all because of the bureaucracy and suffocating rules of the EU. The U.K. are now set on a course for independence and that would mean a decrease in the trade deficit with the EU as U.K. custom shop else where as the world trade opens up for the U.K. market.