The Withdrawal Agreement, Part Five

Abstract

This chapter addresses Part Five of the Withdrawal Agreement, which contains the Financial Provisions. The financial settlement between the UK and the Union is based on continuation of financial rights and obligations deriving from the UK membership in the Union, in line with the principle pacta sunt servanda. The principle finds an expression in Article 70 of the Vienna Convention on the Law of the Treaties, which is recognized as a codification of customary international law. The Union’s budget related rights, obligations, or legal situations created through the UK’s membership in the Union were not affected by the withdrawal. The financial rights and obligations of the Member States derive from a complex system of financial provisions of the Treaties and secondary legislation, and also from agreements and commitments entered into by the Member States separately. The financial obligations relate to the revenue and expenditure under Union’s budget and to off-budget components.