Because the U.K. makes its monthly contributions to the EU budget in pounds, not in euros, the relative value of its payments has dropped along with the sterling | Matt Cardy/Getty Images EU budget takes a pounding from UK currency woes Britain’s payments to Brussels are suddenly worth a lot less than they used to be.

The recent plummet in the value of Britain's currency may be a boon to Europeans who like to shop in London, but it's hitting the EU where it hurts most: right in the budget.

Because the U.K. makes its monthly contributions to the EU budget in pounds, not in euros, the relative value of its payments has dropped along with the sterling. That, officials say, has created a hole in the EU books that is now €1.8 billion and could grow bigger if the currency continues to fall due to fears of the economic impact of Brexit.

Members of the European Parliament, who are set to vote on the EU's 2017 budget next week, have been briefed about the shortfall and are furious about the budget problem as officials try to figure out how to make up the difference. The deficit is already hitting the EU's ability to pay bills, according to a draft copy of the EU's amending budget for 2016, a copy of which was obtained by POLITICO.

For countries that pay into the EU budget in their national currencies, the amount of their annual contribution is set based on the exchange rate with the euro on the last day of the year before the new budget kicks in. So the amount of Britain's payment for 2016 — the third biggest in the bloc after France and Germany — was set at €14 billion, which was £10.3 billion at the time.

But the pound has dropped almost a fifth of its value since the Brexit vote in late June. At current exchange rates, the U.K.'s £10.3 billion contribution adds up to only around €11.5 billion, leaving its payments well short of the €14 billion agreed.

Jens Geier, a center-left German MEP and the rapporteur for the EU 2017 budget, told German media Tuesday that the only ways to fill the gap are for the U.K. to raise its contribution, for other countries make up the difference, or for the EU to find the money elsewhere. The first option, increasing the U.K. contribution, is highly unlikely as it would require all EU countries, including Britain, to agree to the change.

“The euro is the currency of the European Union,” said Geier. “The Brits decided they didn’t want the euro so they will have to bear the consequences of this decision.”

"There is a shortfall, no doubt about it, but we will sort this out," said a Commission source. The Commission could also defer some payments until next year.

The cashflow shortage has the potential to heat up next week's budgetary debates in the Parliament.

“The U.K. is pissing everybody off at the Parliament,” said a Parliament official, reflecting the anger of many MEPs over the issue of Brexit in general. “People say the U.K. is nothing but trouble. The sooner they leave, the better.”

According to the draft amending budget document obtained by POLITICO, the Commission has proposed covering the shortfall with money that member countries owe the EU in fines for breaking competition rules, though such funds can be hard to collect. In 2016, the fines amounted to €1.1 billion. Other MEPs said that other countries will have to make up the remaining shortfall of around €700 million.

Geier said he would welcome the move to cover the shortfall with money from the fines, “because that could be a new development in budgeting policy, and it could be a solution for our annual budget negotiations."

A diplomatic source in the Council of Ministers said national governments were not worried about a potential cashflow shortage, pointing to data that show the EU will spend less than expected this year. "It is spin to hide we are spending less than MEPs wanted," the source said.

This article was updated to include additional reporting.

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