The chapter focuses on the impact of the Brexit on the EU budget. Departing from the hypothesis that the Brexit may act as
a catalyst for fundamental reforms within the EU budget aiming at strengthening the added value of EU expenditures and revenues,
the chapter sketches the pillars of such far-reaching reforms. It then provides an overview over the expected financial implications
of the Brexit. The current status of the UK-EU Brexit negotiations implies a twofold financial impact of the Brexit, comprising
the one-off "Brexit bill" or "divorce bill" and the permanent "Brexit gap". Against this background, the chapter closes with
a brief first assessment of the European Commission's proposals for the next MFF. To cover the Brexit gap and to finance the
new priorities, the proposals foresee an increase in national contributions as well as new own resources.
