Boris Johnson’s threat to withhold payment of the UK’s £39 billion Brexit divorce bill until the EU gives Britain better exit terms has been the source of much debate over whether or not it constitutes a…
- The Conversation
Technically, the UK would argue that this is not a debt, as normally described when referring to sovereign defaults.
Nevertheless, if the EU did consider it such a default, then the consequences would be very clear.
They could include a hit to the UK’s credit rating, its scope for future borrowing at reasonable rates, and access to international markets.
History shows us…