In the recent referendum, one major discussion point was the UK contributions to the EU, which were widely (and falsely) claimed to be £350 million per week.

Claimed UK contribution to EU
Image source

Since then, the UK pound has massively dropped compared to the Euro.
Have the UK contributions to the EU been agreed in UK£ or in Euros?
In other words, does the UK make the same contributions in UK£ as three months ago, and the EU receives less money in Euros, or does the UK pay more UK£ than three months ago so that the EU gets the same number of Euros?

  • 2
    I have no inclination to check the details right now but AFAIK, it's defined as a percentage of GDP and/or some taxes, not as a fixed amount. Even if the calculation is expressed in euro, the UK GDP has also decreased commensurately. And for import products, the price in GBP and therefore the customs duties or VAT (per unit) actually increase as the currency loses value. The UK could however lose out if it has to pay something now based on the conversion rate during the first quarter…
    – Relaxed
    Oct 15 '16 at 14:02
  • Just to add to this. The figure of £350 million was proved to be an extreme exaggeration. theguardian.com/politics/reality-check/2016/may/23/… Oct 18 '16 at 22:08

UK contributes to the European Union in pound sterling.

A UK Parliamentary Report states that:

Because the sterling amount we pay is converted to euro by the Commission, if the pound strengthens against the euro, UK contributions in euro will increase, but our sterling payments will remain exactly the same.

Also, a Politico article states that:

Because the U.K. makes its monthly contributions to the EU budget in pounds, not in euros, the relative value of its payments has dropped along with the sterling.

[ ... ]

For countries that pay into the EU budget in their national currencies, the amount of their annual contribution is set based on the exchange rate with the euro on the last day of the year before the new budget kicks in.

So, this means that the UK is contributing lesser to the EU budget currently since the pound is falling.

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