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UK to explore new EIB arrangements in phase two of Brexit
Joint report

UK to explore new EIB arrangements in phase two of Brexit

by HP 2 min. 08.12.2017 From our online archive
UK says there 'could be mutual benefit' from a continuing arrangement between UK, EIB
The European Investment Bank in Luxembourg (Guy Jallay)

The joint Brexit report from European Union (EU) and UK negotiators points out that the UK would like to explore possible arrangements with the European Investment Bank (EIB) during the second phase of negotiations.

Both sides agreed on a methodology for the financial settlement, or so-called divorce bill, which is detailed in the joint report published on Friday.

This includes arrangements for financial programmes and institutions such as the EIB, European Central Bank, EU trust funds, Facility for Refugees in Turkey, Council agencies and the European Development Fund.

It also consists of a list of components and a set of principles for calculating the value of the financial settlement and payment modalities.

Under a section titled European Investments Bank, whose headquarters are in the Kirchberg area of Luxembourg, the report points out the financial settlement "should not disrupt the operational functioning" of the bank in relation to the stock of operations as a result of Brexit.

The UK will provide a guarantee for an amount equal to its callable capital on the day of withdrawal.

"This guarantee will be decreased in line with the amortisation of the stock of EIB operations at the date of withdrawal, starting on the date on which the outstanding stock reaches an amount equal to the total subscribed capital on the date of withdrawal and ending on the date it equals the total paid-in capital on the date of withdrawal, both as defined in the EIB statute," it reads.

It goes on to state the UK wishes to explore possible arrangements with the EIB during the second phase of negotiations as it believes there could be "mutual benefit from a continuing arrangement".

One of the points reads: "The UK considers there could be mutual benefit from a continuing arrangement between the UK and the EIB. The UK wishes to explore these possible arrangements in the second phase of the negotiations."

The current report stresses UK projects will not be eligible for new operations from the EIB reserved for member states after the date when it withdraws from the EU.

It also states the UK's share of the paid-in capital will be reimbursed in 12 annual instalments, which is due to start at the end of 2019.

The UK will remain liable for the paid-in capital until the outstanding stock of EIB operations comes to the same amount as the paid-in capital on the date Brexit takes place.

"Apart from these reimbursements, the EIB will not make any other payment, return or remuneration on account of the withdrawal of the UK from the EIB or on account of the provision by the UK of a guarantee," the report continues.

With regards to the European Central Bank, the report states that, once the UK has withdrawn from the EU, the UK's paid-in capital in the ECB will be reimbursed to the Bank of England.

The modalities and other practical arrangements "will be established by the ECB Governing Council following the rules of the Treaties and its Protocol 4".