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Is the UK EU membership bill paid in GBP or EUR?

If it is paid in euros, is this not inefficient because eventual credits (eg development funds) will need to be converted back into sterling, so a conversion loss is experienced twice?

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    No idea how the EU deals with it, but FWIW what most businesses would do in this circumstance is this. They'd send an invoice in EUR. Upon receiving the GBP equivalent on the payment's date, they'd keep enough GBP to cover expected GBP expenses and convert the rest to EUR on the spot to avoid currency risks. – Denis de Bernardy Mar 10 '18 at 10:25
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    Somewhat related: politics.stackexchange.com/questions/12607/… – Relaxed Mar 12 '18 at 21:23
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Every payment into the EU coffers are made in EUR, obviously. Same rule applies as when any payment into HM coffers is due. OBR already took that into account calculating EU contributions due from UK. Please see here and here

Polish government, for example, takes advantage of that by taking advantage of - and/or "influencing" it further with other instruments available - the conversion rate when they are due.

Yes, the conversion is done both ways. But obviously, not necessarily at a loss

  • Thank you. Do you have a link to a source? – Ben Mar 12 '18 at 13:11
  • @Ben - please see edited answer. – user10424 Mar 12 '18 at 13:58
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It depends. A lot of the money "paid" to the EU doesn't actually go to the EU. It is spent in the UK, on UK projects or as grants/subsidies for things in the UK like farming and culture. In that case the money is simply transferred directly from the UK government, in GBP.

In fact, there is no "membership bill", only a commitment to fund things in the EU budget. If those things can be funded in GBP it makes sense to do so.

Data from the Office for National Statistics: https://visual.ons.gov.uk/the-uk-contribution-to-the-eu-budget/

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    Do you have a source for any of this? – Joe C Mar 12 '18 at 22:41
  • I don't believe it to be true. OBR already revised the value of the contribution to the EU due to drop in GBP/EUR exchange rate. Also, all funds that are included in EU "tag" are financed by EU. They're only managed by member states. – user10424 Mar 13 '18 at 11:24
  • WHat does the precise value of the contribution have to do with anything? You are correct in that those funds are controlled by the EU, but why would it collect the money in EUR and convert it back to GBP when it could just ask the UK government to spend it directly? The EU is a relatively small organization, it doesn't have the people to even direct the spending on that level. It's entire admin staff is smaller than many UK local councils. – user Mar 13 '18 at 14:04
  • The question is about currency the contribution is paid in. It is paid in EUR. This has nothing to do how many people EU has - the payout from EU is fixed, it is divided into few categories and then it's paid out into (presumably) BofE account EU has opened there. After that it's up to member states and NGOs there to divvy it up further, including detailed rules. It would collect the contributions in EUR because contribution paid is used to finance future expenses of the EU. I believe it's at least a full year's delay (contribution paid in 2017 will return in 2019). – user10424 Mar 13 '18 at 15:07
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    @AcePL do you really think that there is some central EU bank account the money gets paid into somewhere? Do you have any evidence of its existence? – user Mar 13 '18 at 15:55

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