The first confidential draft papers are being circulated, outlining how the European Commission proposes dealing with a 16 per cent drop in revenue from 2020, once Britain leaves the bloc.
Among three suggestions is a drastic cut in aid funding to countries’ poorer regions – a move likely to infuriate populations already disillusioned with the European project.
Spain, still deep in crisis over the Catalonia’s attempts to break free of Madrid, would see funding for regional areas ilike Andalucia and Extremadura effectively cut off, having previously been pledged €37bn between 2014-20.
Spanish newspaper El Pais said those regions had come to rely on the EU money and the cuts would bring local projects screeching to a halt.
Italy, recently found to be the most eurosceptic nation of all 28 member states, could stand to lose most of its €43bn handed out over the same period.
The Commission is due to submit its proposals in May, and eurocrats are already braced for an almighty row with MEPS and leaders.
But the prospect of a disgruntled Europe does offer Theresa May something of a bargaining chip over Brexit talks.
Some observers believe the mask of unity the EU has so far worn during negotiations could be about to slip, potentially opening up a window of opportunity for Britain to exploit.
With talks still stumbling over the so-called divorce bill, Brussels might be willing to make concessions in order to plug some of the gap as Britain’s withdrawal draws nearer.
That may include a more attractive trade deal or a reduction in the cost of leaving, although there are no guarantees.
A German official told the Telegraph the EU may be willing to settle for £50bn – £10bn less than the Eu’s £60bn net figure and half its gross estimate.
Even if that were the case, it would still not be enough to solve the EU’s long term financial headache, meaning some tough decisions will still have to be made.