For example, there is also a substantial transfer of resources from the South-East of England to the rest of the UK, reflecting differences in the underlying productivity of the different regional economies. [...] The adjustment in welfare rates is based on the ratio of the average pension payment in Ireland to the payment in Northern Ireland in 2019. [...] This also happened in the case of the break-up of the US state of Virginia in the 1860s and, more recently, the break-up of the USSR and of Czechoslovakia in the early 1990s. [...] In the event that the UK agreed very generous departure terms, involving the write-down on the debt attributable to Northern Ireland, the effect of the elimination of interest payments on the Northern Ireland fiscal deficit is shown in the third panel of Table 7. [...] The potential saving in the Northern Ireland deficit if the UK exceptionally agreed to pay the pensions in Northern Ireland on a declining basis after unification, is shown in the last column of Table 7.
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- 11
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- Ireland
