fair enough, and it doesn’t seem like any principles are written in stone. 7 years though seems bizarre especially if it is on top of normal payments over the next 2 years. for a breakdown I was thinking along the lines of splitting our current 12% contributions into capital and revenue/operating budgets and dealing with it that way (though I appreciate contributions may not even be broken down like this). this may be a bit simplistic, and in the absence of any detail so purely for discussion we could pay for:
1. Any existing deficit at the point of exit – ie our share of any overspend to date + provable provision for existing liabilities (eg deficit in a DB pension scheme). presumably audited. existing ‘liabilities’ have been referred to, though I’ve not seen any detail.
2. Revenue/operational budget over the 2 years from the trigger. I assume we pay as normal as still a member but the eu therefore has 2 years to reduce this budget by 12% in order to cope with us leaving. that’s in their control, and so beyond that not sure why we would have to contribute any additional beyond the 2 years for exiting. we may have to pay something for any new negotiated relationship.
3. Any one off costs to reduce budget in 2 - eg redundancy costs. I’m sure eu may try to argue this all our cost as it is caused by us leaving.
4. Ongoing capital projects. gets a bit tricky as I imagine we have technically ‘approved’ projects as a member and so the argument may be that we have committed spend on these projects until they complete. whether that’s a valid argument may depend on how the funding and approvals process for capital projects works. it seems reasonable to say once you exercise the trigger that any new capital projects cannot rely on any uk funding, even in respect of the subsequent 2 years, as any benefits from them won’t accrue to the uk. any deal on existing projects could depend on when they were started, but not sure why we should be paying for years ahead on projects we get no advantage out of.
anyway, just a thought. I’m sure a negotiation could break the above, especially capital, into numerous other buckets.