MNI BREXIT: Talks On Exit Bill Stalled, Little Progress Seen

--No Official UK Position Paper, Only Committed To Oral Presentation 

--EIB Position To Be Discussed Next Week in Brussels

by Jean Comte

     BRUSSELS (MNI) - Among the Brexit topics that the European Union wants to

deal quickly with, there is one that has not made any progress at all: the

financial settlement, also called "Brexit bill".

     The financial settlement refers to the amount of money that the EU wants

the UK to pay when leaving the bloc. It is aimed at compensating the various

commitments made by the UK regarding the EU budget whilst still a member of the

Community.

     After a hefty debate, the UK has recognised the existence of such financial

obligations, but has not engaged in any talk regarding how to settle the amount.

According to one EU official, it only asked for precise direction regarding the

EU position during the summer.

     The topic is pivotal, as the EU refuses to tackle issues linked to the

future EU-UK relation, or other issues related to Brexit, before sufficient

progress has been made on the topic of the bill.

     Sufficient progress has never been precisely defined by the EU negotiating

team, but sources acknowledge that it is not about finding the exact amount --

it is mostly about having a calculation method on which both sides agree.

     "I think the UK will give more clarity, but without committing to a given

amount," Peter Clieppe, of the think-tank Open Europe, told MNI. "That would

require the EU to be quite flexible, but I think this is possible, given the

bloc will have to face an important budgetary hole with the UK's departure".

     EIB HEADACHE

     According to an EU official, discussions on the financial settlement and

the UK's European Investment Bank stake will take place next week, on the

margins of the main Brexit negotiations. "It was a British request," said an EU

senior official.

     The UK, which owns 16% of the EIB, is also a large recipient of its funding

-- EIB investments in the UK economy came to E6.9 billion in 2016. Both sides

would therefore happy to manage a swift withdrawal, and possibly some kind of

agreement to maintain some funding in the future.

     The EIB told MNI that approval of British projects seeking EIB support were

delayed, as, awaiting Brexit clarification, the bank is applying an extra

diligence towards these projects.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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