Hard Brexit would cost Dutch taxpayers €12bn until 2026

EPA/ROBIN VAN LONKHUIJSEN

The world's largest cruise ship, Oasis of the Sea, in the port of Rotterdam in The Netherlands prior to leaving for the United Kngdom.

Hard Brexit would cost Dutch taxpayers €12bn until 2026


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If the United Kingdom leaves the European Union without a deal, the Netherlands could lose €700 million in food safety services and €1.6 billion in higher EU contributions, neither of which include either import and export duties.

According to an audit report commissioned by the Dutch government, €2.3 billion would be the overall cost of a hard Brexit for the taxpayer in the first year, 2019-2020,  which would then rise to €2.5 billion-€3 billion a year until 2026.

Since 2016, net contributors to the EU budget, including Germany and the Netherlands, have known that Brexit will create a budget deficit they will need to cover. A part of this deficit will be covered by a so-called “divorce bill,” which will only be paid if the UK signs a Withdrawal Agreement and secures a transitional period.

In 2017, a German newspaper estimated that Germany would need to increase its contributions to the EU budget by 16%, or €3.8 billion out of a total overall cost of €10.2 billion.

The lack of certainty surrounding Brexit is also a source of investment and income. Demand for business office space from UK-based companies in the Netherlands has trebled since 2016, with most of the demand coming from small financial companies in Amsterdam.

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