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£50bn exit fee

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£50bn exit fee

Postby diy » Tue Apr 04, 2017 1:02 pm

I'm really struggling with the idea that we could be liable for £50bn.
According to this:
Image
We are net contributors to the tune of about £8.6bn. That means we have financial commitments which cannot be terminated equivalent to 6 years of payments. I really wonder how they've calculated this?

Looking at various data available I came up with a rough Balance sheet / Market Cap value of approx £110Bn. On a pessimistic stance this could be divided up per citizen (rather than per share based on investment). In which case we are due back £14bn off the bill. Either way its very hard to see an organisation with a value/spend of £110bn, having £50bn of ongoing liabilities apportioned to a country which contributes approx 10%. I would have thought our maximum liability would have been 3 years, less current cash in the bank.

So something closer to half.

Anybody with a view?
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Re: £50bn exit fee

Postby Goldensyrup » Tue Apr 04, 2017 3:45 pm

Its not an exit fee per se. It is a recognition of unpaid budget commitments, pension liabilities, loan guarantees and spending on UK based projects.
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Re: £50bn exit fee

Postby miner » Tue Apr 04, 2017 3:58 pm

Goldensyrup wrote:Its not an exit fee per se. It is a recognition of unpaid budget commitments, pension liabilities, loan guarantees and spending on UK based projects.


It's not a "recognition" of anything. It's balderdash!
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Re: £50bn exit fee

Postby diy » Tue Apr 04, 2017 4:13 pm

How did they get in to a pension deficit ? In any case i calculate it to be a max of £1.2bn (1100 british employees * max tax free pension pot of £1m).
what cannot be cancelled or restructured to deliver less with less?

Is there a suggestion that those who work for the Eu who are now redundant cannot be made redundant? maybe Uk employment law doesn't apply?

I already took in to account spending on U.k. projects. no doubt we could fund those as we please
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Re: £50bn exit fee

Postby atticus » Tue Apr 04, 2017 6:06 pm

I think that GS has the principle right. I do not know whether £50bn is a realistic estimate. But as an explanation of the principle, balderdash it isn't.
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Re: £50bn exit fee

Postby dls » Tue Apr 04, 2017 6:47 pm

There may or may not be many particular issues where it it is appropriate or not to make a payment. I doubt that one principle covers them all.

I am not sure that 'recognise' is the correct word, but it is wrong to make a very simple assumption (either way) that any kind of simple principle applies. The EU alos appears to be looking only to one side of any balance.
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Re: £50bn exit fee

Postby miner » Tue Apr 04, 2017 7:27 pm

That's why I described it as "balderdash" - ignoring any assets to which we are entitled, as if the UK is stupid.

It's interesting to note that the House of Lords is reported to have stated that in its view there are so such payments due.

In any event, normally, when a job comes to an end or the person leaves the organization, pension payments by the employer cease. What is the setup with the pensions of the UK employees in the EU and their jobs come to an end? Does anyone know?
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Re: £50bn exit fee

Postby diy » Wed Apr 05, 2017 3:10 pm

Article 50 really should have introduced the concept of an exit bill.
Nige made some valid points today about the additional 16+bn we'd pay in before leaving.
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Re: £50bn exit fee

Postby atticus » Wed Apr 05, 2017 4:11 pm

Alternative view: St Nige was unpleasant and gratuitously offensive.
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Re: £50bn exit fee

Postby dls » Wed Apr 05, 2017 4:38 pm

Nige was unpleasant and gratuitously offensive.


Indeed, and so were several of the MEPs from other states toward the UK.
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