Merkel warns UK it'll have to pay EU obligations in Brexit

Frankfurt

GERMAN Chancellor Angela Merkel warned the United Kingdom that it must pay what it owes the European Union (EU) as part of Brexit talks, saying it's misleading to view the costs as a divorce bill.

"This is about obligations that Great Britain has entered into and that naturally must remain on the books," Mrs Merkel said in her weekly podcast published on Saturday. "It's not about the cost of divorce - that makes it sound like fines. We're still at the very start of these negotiations."

Talks on the UK's exit from the EU were to resume on Monday in Brussels with little clarity on key topics, including the amount of the financial settlement that's an early part of the discussions. With Prime Minister Theresa May's government silent on how much it'll pay the EU, Mrs Merkel said the two are facing a "very difficult issue". How much the UK owes the EU in leaving the bloc is among the most difficult issues, with analysts estimating the EU will put forward a gross bill of as much as 100 billion euros (S$162 billion). Britain's government acknowledged in July that it will have a bill to pay, saying it wants to "determine a fair settlement of the UK's rights and obligations…