The UK is the EU’s Treasure Island. We run a £92bn current account deficit with them ( year to Q3 2016). That includes a huge deficit on trade in goods which come in tariff free to their advantage. It includes £7bn of annual remittances by EU citizens living in the UK but sending money back to their home countries from good jobs here.
The UK has lent the rest of the EU £1.4 trillion through the London banking system. We pay around £700 million more to them each year for UK citizens to use their health services than they pay to use the NHS here.
We pay a gross budget contribution of £17.7 bn or £10.8 bn after rebate and payments back to the UK state.
I will be looking in more detail at the financial flows going from the UK to the rest of the EU in later blogs. The overall magnitude of our financing of the EU is the main reason they do not want us to leave without first demanding we carry on paying as if we were staying.
If they decided to be decent and sensible they would of course find it easier to keep hold of much of this money. London banks will be very willing to lend more if they can trade sensibly with the continent. If the Commission and Germany agree with the UK proposal that all EU nationals located in each others countries can stay the remittances will continue. If they want tariff free trade they will doubtless continue to sell us more than we sell them.
Meanwhile leaving must mean ending our budget contributions. That should not be part of any negotiations.