Robert Rowland also lamented the fact that UK negotiators have effectively written of £7billion (€8 billion) by abandoning any claim to accumulated profits from the European Investment Bank (EIB), which is jointly owned by the EU28. That cash would have covered more than one-fifth of the £39billion “divorce bill” the UK is likely to be expected to pay if Mr Johnson’s Withdrawal Agreement and Implementation Bill (WAIB), is eventually ratified by Parliament.
MEP for South East England Mr Rowland, a former hedge fund manager, told Express.co.uk he and his party colleagues had attended a “tense” meeting with UK negotiators last week in which they learned the money had effectively been written off.
Suggesting the details had been “swept under the carpet” by Mr Johnson, Mr Rowland, who advocates a so-called “clean break” Brexit, believe there is no difference between the Prime Minister’s deal and that of predecessor Theresa May in respect of the AIB.
He added: “Everything the previous Government did was done in order to smooth our reentry into the EU a later date, I am convinced of that.”
However he warned there was a nasty surprise looking in the shape of “callable capital”, which in accordance with the terms agreed with Brussels, would leave the UK liable for vast amounts of cash if the Eurozone hits problems, which he is convinced it will do, suggesting both Germany and Italy were on the verge of recession.
Stressing the £32billion was in addition to oft-quoted £39billion figure, Mr Rowland added: “In the words of shareholders and Board of Directors, Philip Hammond had a fiduciary duty to negotiate our entire capital of €11bn back to UK taxpayers and remove us from the toxic time bomb of at least €37bn if the Eurozone blows up in the next 12 years.
“Highly likely within 24 months in my opinion as a student of economics and 32 in financial markets working for Lazard, Soros Fund Management and Odey Asset Management!
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The UK paid the equivalent of £3billion (€3.5billion) into the bank in 1973, when it joined what was then known as the Common Market, representing 16.1 percent of the total investment.
Since then, the EIB has invested in capital projects in the UK included Crossrail and London’s “super sewer”, while gradually building up hefty reserves via retained profits.
However, all the UK will get back is its original £3billion stake – which Mr Rowland said would on its own be valued at at least ten times that amount today.
Mr Rowland, whose tweet about the issue was in turn retweeted by party leader Nigel Farage, added: “I think people have been so focused on the backstop they have not focused on the real bread and butter issues here, which are horrific for this country.
“It’s not even as if that £3billion comes off the top of the £39billion either – it’s paid back in instalments, over 12 years!
“It doesn’t matter if you are Leave or Remain – this is outrageous.”
Mr Rowland also predicted the Luxembourg-based EIB, which is worth a total of half a trillion euros, would be used to bail out ailing European economies in the current years, explaining: “I think the EIB will become a vehicle to protect the EU.”
“It’s amazing how few people know about this, even financially literate people.
“In fact, it’s as if it’s been swept under the carpet.”
