UK to not honour Brexit financial commitments without EU trade deal in future, says David Davis

Brexit Secretary David Davis on Sunday said Britain will not honour financial commitments agreed this week with the European Union if they fail to secure a future trade deal, contradicting finance minister Philip Hammond.

AFP December 11, 2017 08:51:37 IST
UK to not honour Brexit financial commitments without EU trade deal in future, says David Davis

London: Brexit Secretary David Davis on Sunday said Britain will not honour financial commitments agreed this week with the European Union if they fail to secure a future trade deal, contradicting finance minister Philip Hammond.

"No deal means that we won't be paying the money," he told the BBC.

"It is conditional on an outcome. It is conditional on getting an implementation period, it is conditional on a trade outcome," he said.

Under an initial agreement reached with the EU on Friday, Britain will pay a financial settlement of between 35 billion- 39 billion pound for leaving the bloc in March 2019.

The 15-page document, detailing post-Brexit arrangements for citizens' rights and the Irish border, was hammered out after nearly six months of negotiations and now allows the talks to move on to a future trade deal.

UK to not honour Brexit financial commitments without EU trade deal in future says David Davis

File image of Brexit secretary David Davis. Reuters

Davis' stance contradicts comments from Hammond on Wednesday, who said London would pay the bill regardless of their outcome.

"Nothing is agreed until everything is agreed in this negotiation," he told a parliamentary committee.

"But I find it inconceivable that we as a nation would be walking away from an obligation that we recognised as an obligation," he said.

"That is not a credible scenario. That is not the kind of country we are. Frankly, it would not make us a credible partner for future international agreements."

A spokeswoman for the Treasury reached Sunday declined to comment.

Davis' interview also sparked reaction in Dublin, after the Brexit minister told the BBC the agreement struck was "a statement of intent" rather than "legally enforceable".

Ireland responded that the deal was "binding" and it would hold Britain accountable — branding his comments "bizarre".

Updated Date:

also read

Boris Johnson makes U-turn, says will go into quarantine for 10 days after COVID-19 contact
World

Boris Johnson makes U-turn, says will go into quarantine for 10 days after COVID-19 contact

Johnson's 10 Downing St. office said Sunday that the prime minister and treasury chief Rishi Sunak were both alerted overnight by England's test-and-trace phone app

US 'very concerned' COVID variants could risk recovery, says treasury secretary Janet Yellen
World

US 'very concerned' COVID variants could risk recovery, says treasury secretary Janet Yellen

The G20 on Friday heard from a specially commissioned panel of experts who warned the world must invest at least $75 billion over the next five years to prepare for and avert the next pandemic

Why Mastercard earned RBI ire and what's next for the payment network processor in India
Business

Why Mastercard earned RBI ire and what's next for the payment network processor in India

The failure of Mastercard to store data of card transactions done in India within the country itself is in direct violation of India's Personal Data Protection Bill