No deal Brexit to cause slight rise in EU payments for Latvia

In the case of a no-deal Brexit, Latvia's payments into the European Union budget could increase by about EUR 23.27 million, according to report from the Finance Ministry submitted to the Cabinet of Ministers, the LETA newswire reported August 18.

The ministry pointed out that uncertainty with regard to the Brexit outcome also creates uncertainty in regards to payments into the EU budget after 2019.

''There is a risk that in the medium term Latvia's payments into the EU budget could increase in relation with the planned amount if Brexit takes place without an agreement and if EU member states fail to agree in the short term on measures to lessen the consequences of Brexit and avoid a negative impact on the EU budget,'' the Finance Ministry pointed out.

According to a ministry assessment, if there is a negative Brexit scenario, Latvia's payments into the EU budget in 2019 could increase by EUR 4.23 million, but in 2020 - by EUR 23.27 million. In recent years, Latvia has paid in approximately EUR 250 million into the EU budget.

Newly-installed Prime Minister Boris Johnson has repeatedly insisted the UK will leave the EU on October 31 regardless of whether an agreement has been reached.

Around 100,000 Latvians are estimated to be resident in the UK with around 300 Britons in Latvia.

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