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Mercedes team principal Toto Wolff has explained why he believes that Red Bull's breach of the budget cap was not simply a "minor overspend."

The FIA has recently confirmed the rumours suggesting Red Bull exceeded the budget cap last season, with the Austrian team deemed to have committed "procedural and minor overspend breaches." 

This characterisation means that Red Bull's spending was less than 5% over the budget cap, though this seemingly small percentage could amount to more than $5 million in additional funds. 

One of the biggest issues surrounding this breach is the uncertainty regarding how extensive the financial overspending was. Since no definitive figure has been provided, there has been speculation about how significantly Red Bull violated the cap. 

Toto Wolff believes it is inaccurate to describe Red Bull's breach as "minor", as quoted by corrieredellosport:

"It is a so-called minor violation, but I believe that the definition is not completely correct. 

"If you spend five million more than the limit, it is still a minor violation, but the impact on the championship is significant.

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"We always monitor closely which parts are brought to the track by the top teams in each race, and for at least two seasons, we can see that there are two top teams that are the same and another that instead spends more...

"So you can understand spending an extra $500,00 can make a difference."

The FIA's response to this breach will be critical, as it will set a precedent for future violations of the budget cap. 

Mercedes and Ferrari will be expecting harsh consequences for Red Bull, or the deterrent for exceeding the cap could become insufficient in preventing teams from overspending. 

Teams with the financial resources of Mercedes and Ferrari will happily stomach a fine if they can achieve greater levels of performance, so a more severe punishment will be expected. 

No clearly defined penalty is in place for when an F1 team violates the cap, although there are several routes the FIA can take. 

Regardless of how aggressively the FIA responds, it will shape whether F1's budget cap will play its intended role within the sport.