Impact of Brexit on Dutch public finances
The United Kingdom's departure from the European Union will have a financial impact on the Netherlands. For instance, the Netherlands will need to pay more to the EU.
The exact impact will depend on:
- the Brexit negotiations between the UK and the EU;
- the transition period (from 29 March 2019 when the UK leaves the EU to 31 December 2020);
- any new trade agreement between the Netherlands and the UK.
Brexit may affect Dutch public finances in 3 ways:
- If Brexit results in less trade with the UK, less tax will be collected. This will reduce government revenue.
- The Netherlands may have to contribute more to the EU multiannual budget. This is because Brexit means the UK will stop contributing financially.
- Agencies that carry out government policy, like Customs and the Netherlands Food and Consumer Product Safety Authority (NVWA), will face higher costs. They will need more staff, because they will have to carry out more checks on goods entering the country after Brexit.