According to EU budget commissioner Guenther Oettinger, Britain’s withdrawal will mean an annual loss of about 12 billion euros to the EU budget.
The missing billions will be made up through cuts and higher payments from other EU members.
There were reports that the British government was ready to offer about 40 billion euros to settle Britain's liabilities before Brexit. However, officials were willing to pay only in case a future UK-EU trade deal will be secured for at least two years after Brexit.
The transitional period is in the interests not only of Britain, but also of the European Union. This will allow the economy to adjust, Chancellor of the Exchequer Philipp Hammond said. He noted that MPs will need to understand the challenges companies will face because of Brexit.
Earlier the European Commission said talks about possible transitional period could start only after solving the main issues of the country's exit from the EU.
