UK 'not legally obliged' to pay Brexit exit bill, say peers

[northernladyuk]

If we're not legally obliged to pay them then they aren't debts.

Personally I would pay what we are committed to until we leave in exchange for a free trade agreement that benefits both sides. That's pretty much what we'll end up with.

The UK parliament could pass a law to make the entire national debt disappear. There would then be no debt but the credit rating agencies would take a view that a default had taken place.

[BrilloPad]

The UK parliament could pass a law to make the entire national debt disappear. There would then be no debt but the credit rating agencies would take a view that a default had taken place.

Since most of QE is leant to another arm of the government, it would make alot of sense.

If the credit agencies play rough, then nuke em. After we have nuked the rest of the EU that is.

[tomtomagain]

The UK parliament could in any case pass a law stating that no funds are owed or to be paid to the EU. I wonder if the credit rating agencies would take a negative view.

These would be the same agencies that rated sub-prime mortgages as AAA? If we don't owe the money then there's no debt to rate.

But this is just pre-negotiation talk. Last week the drunkard Juncker was strutting around saying that the UK would have to pay a "Salty" bill. The UK has come back and said "Legally we don't".

So now we know where both parties are starting from.

[tomtomagain]

The EU will try to make sure the UK gets a worse deal than now. The UK will not accept it. Its going to be a hard exit.

They will definitely need to make it appear as if the UK get's a worse deal. Whether or not we actually do get a worse deal is another matter.

[vetran]

These would be the same agencies that rated sub-prime mortgages as AAA? If we don't owe the money then there's no debt to rate.

But this is just pre-negotiation talk. Last week the drunkard Juncker was strutting around saying that the UK would have to pay a "Salty" bill. The UK has come back and said "Legally we don't".

So now we know where both parties are starting from.

I think the government should unravel those AAAA bonds and declare them invalid. That would fix a few things. If we had done it during Bush or Obama's presidency its not like we would have lost much face they didn't like us much.

[AtW]

The truth is that there is no deal...

[vetran]

The truth is that there is no deal...

Poor EU then.

[Mordac]

The truth is that there is no deal...

No, but since we're not allowed to negotiate one until A50 happens, that's not a problem. What's the matter, are you worried they'll put a tarif on nuts?

[northernladyuk]

These would be the same agencies that rated sub-prime mortgages as AAA? If we don't owe the money then there's no debt to rate.

But this is just pre-negotiation talk. Last week the drunkard Juncker was strutting around saying that the UK would have to pay a "Salty" bill. The UK has come back and said "Legally we don't".

So now we know where both parties are starting from.

The agencies are rating credit worthiness in this case, not debt.

[GB9]

The UK parliament could pass a law to make the entire national debt disappear. There would then be no debt but the credit rating agencies would take a view that a default had taken place.

Of course there was never any debt with the EU in the way of borrowings. What there may have been was a legal commitment to continue payments. It seems that once a50 is triggered then legally there are no commitments. And as we have paid for common assets in Brussels, legally they probably owe us.