Brexit will increase Germany’s net contributions to the EU budget by 16% or €3.8bn, the Funke Mediengruppe reported on Friday.

The newspaper cites a European Parliament report that reviews the redistribution of expenditure after the UK leaves the EU. It is estimated that EU member states must pay an additional €10,2bn.

The EU expects to ameliorate the financial burden via a €60bn “divorce bill.” However, as the UK is offering no more than €23bn the prospect of a hard Brexit and an immediate rise in net contributions increases.

Berlin is advocating a longer than two years transition period for the UK – during which contributions to the budget will be maintained at current levels – but Brexiteers are insisting at a June 2021 exit.

Germany is the biggest country in terms of both population and GDP. The UK is the second biggest net contributor. France is facing an increased net contribution of approximately €1.2bn year and Italy €1bn.

The political discussion now is whether some of this burden should take the form of direct taxation, bypassing indirect national contributions to the EU budget.