It is undeniable that BREXIT will have a significant effect on the next Multiannual Financial Framework (MFF) which will cover the period 2021-2027. The EU budget will largely be affected as a result of the loss of the UK contribution which was around €10 billion. In case of a no deal BREXIT there will be a significant gap in the EU budget also in the current funding period with this hole estimated to be that of around  €14 billion. For Malta this would mean an increase in our net contribution of about €6 million annually.  

To combat this within the withdrawal agreement both the EU and UK have negotiated a financial settlement which will cover the UK’s financial obligations under the current financial framework.  If the UK agrees to this settlement and the subsequent withdrawal agreement it would guarantee that all EU projects and programmes will be financed as planned under the current MFF, providing certainty to all EU and UK beneficiaries. As a result, this would necessitate the need for increased contributions by member states to cover the current needs of the EU budget.   

Should you require more information about Brexit, kindly visit meusac.gov.mt or call on 2200 3300.