Britain faces EU budget bills for more than a decade warns Germany

Britain is facing a decade of EU budget bills following its decision to leave the bloc, the German finance minister has said.

While German Chancellor Angela Merkel adopted a lenient stance following the outcome of the 23 June referendum and offered "fair" negotiations, French President Francois Hollande has has demanded tough talks to prevent contagion, warning "there must be a price" for Brexit.

Hollande is concerned that an easy divorce could embolden anti-EU political forces in France, which faces presidential elections next year.

Speaking to the Financial Times (FT), Wolfgang Schauble said: "Until the UK's exit is complete, Britain will certainly have to fulfil its commitments." He added: "Possibly there will be some commitments that last beyond the exit ... even, in part, to 2030 ... Also we cannot grant any generous rebates."

According to EU proposals disclosed by the newspaper this week, Brussels could seek a €40bn-€60bn (£34.2bn-£51.3bn) exit bill. It added that the EU is eyeing the completion of a draft exit bill by autumn 2018 to set Britain on course for a departure in 2019.

As Britain looks to disentangle itself from the EU, outgoing US President Barack Obama expressed hope that the pair would preserve its economic and security relationships as much as possible. "I think the European Union is one of the greatest achievements of the world," Obama said. "You have to preserve those achievements and fight for them. You can't take them for granted."

He added: "I hope that the negotiations over Britain's withdrawal from the EU will be conducted in a smooth and orderly and transparent fashion."

Obama, who is currently in Berlin, is set to hold talks with Prime Minister Theresa May and the leaders of France, Italy and Spain on Friday (18 November). He will then continue his journey to Peru.