- 05 Apr 2005 15:24
#607904
The UK is now the biggest contributor to the EU budget. Pro-EU people will say "Well, that is because the rich countries must help the poor countries!" However, the UK is NOT the richest country in the EU, but we still subsidise countries that are richer - such as Ireland.
UK first in Europe for contributions
By George Trefgarne, Economics Editor (Filed: 21/03/2005)
Britain may have overtaken Germany to become the biggest net contributor to the EU, the Treasury has admitted.
Gordon Brown believes he is bankrolling the EU
The news comes as the Chancellor prepares for a meeting with his fellow EU finance ministers on Wednesday and Thursday this week, where he is expected to have a serious row. Mr Brown believes that Britain is effectively bankrolling the EU, a situation compounded by its lax accounting system.
According to the Treasury's Red Book, there was a surprise increase of £1.7billion in Britain's payments to EU in the past few months, taking our total net contribution to the EU to £4.3billion.
Figures for Germany's contribution have yet to be published, but a Treasury spokesman said that if it were the same as the £4.1billion last year, "the UK's net contribution would be greater than Germany's if the £1.7billion were added".
More detailed figures will not be published until next month. But, in the meantime, the rise in the cost of Britain's membership of the EU threatens to have serious political ramifications. The Treasury is already forecasting a near doubling to £5.1billion in our net contributions by 2008 and any further increase could add to the fiscal deficit and fuel Tory claims that tax rises are inevitable if Labour wins a third term.
This week, EU finance ministers hope to hammer out the EU's budget. The Commission wants a big increase in order to pay for enlargement and the Chancellor faces a fierce fight to retain Britain's rebate, worth £3.6billion last year. The rebate was granted in 1984 when Britain was one of the poorer countries in the EU, but it is now one of the richest.
Stephen Timms, one of the Chancellor's junior ministers, said last week the rebate is "not negotiable and fully justified." He also released a table in a Parliamentary answer, showing Britain gets less out of the EU than any other nation, a situation he described as "unfair".
The Government is committed to holding a referendum on the EU Constitution. The escalating net cost of membership is likely to be a serious setback for Tony Blair as he campaigns for a Yes vote.
The Treasury hopes the sudden rise in Britain's net contributions is temporary, has been caused by a delay in payments from the EU's structural funds and will be clawed back in future years. But a contributory factor is Britain's terms of membership. Three quarters of all the UK's customs revenue goes to Brussels, and as Britain has some of the biggest entry points to the EU, such as Heathrow airport, payments are escalating.
Mr Brown is also angry at the chaos in the EU's accounts, which have not been signed off by the auditors for 10 years in a row.
The Office for National Statistics said it was £3.3billion in 2003, £300m lower than the Treasury; and the EU itself says in its accounts Britain contributed £1.8billion that year.
UK first in Europe for contributions
By George Trefgarne, Economics Editor (Filed: 21/03/2005)
Britain may have overtaken Germany to become the biggest net contributor to the EU, the Treasury has admitted.
Gordon Brown believes he is bankrolling the EU
The news comes as the Chancellor prepares for a meeting with his fellow EU finance ministers on Wednesday and Thursday this week, where he is expected to have a serious row. Mr Brown believes that Britain is effectively bankrolling the EU, a situation compounded by its lax accounting system.
According to the Treasury's Red Book, there was a surprise increase of £1.7billion in Britain's payments to EU in the past few months, taking our total net contribution to the EU to £4.3billion.
Figures for Germany's contribution have yet to be published, but a Treasury spokesman said that if it were the same as the £4.1billion last year, "the UK's net contribution would be greater than Germany's if the £1.7billion were added".
More detailed figures will not be published until next month. But, in the meantime, the rise in the cost of Britain's membership of the EU threatens to have serious political ramifications. The Treasury is already forecasting a near doubling to £5.1billion in our net contributions by 2008 and any further increase could add to the fiscal deficit and fuel Tory claims that tax rises are inevitable if Labour wins a third term.
This week, EU finance ministers hope to hammer out the EU's budget. The Commission wants a big increase in order to pay for enlargement and the Chancellor faces a fierce fight to retain Britain's rebate, worth £3.6billion last year. The rebate was granted in 1984 when Britain was one of the poorer countries in the EU, but it is now one of the richest.
Stephen Timms, one of the Chancellor's junior ministers, said last week the rebate is "not negotiable and fully justified." He also released a table in a Parliamentary answer, showing Britain gets less out of the EU than any other nation, a situation he described as "unfair".
The Government is committed to holding a referendum on the EU Constitution. The escalating net cost of membership is likely to be a serious setback for Tony Blair as he campaigns for a Yes vote.
The Treasury hopes the sudden rise in Britain's net contributions is temporary, has been caused by a delay in payments from the EU's structural funds and will be clawed back in future years. But a contributory factor is Britain's terms of membership. Three quarters of all the UK's customs revenue goes to Brussels, and as Britain has some of the biggest entry points to the EU, such as Heathrow airport, payments are escalating.
Mr Brown is also angry at the chaos in the EU's accounts, which have not been signed off by the auditors for 10 years in a row.
The Office for National Statistics said it was £3.3billion in 2003, £300m lower than the Treasury; and the EU itself says in its accounts Britain contributed £1.8billion that year.
"This is a victory for France."
Jacques Chirac in 1998 when France won the football World Cup
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"This is a victory for Europe."
Jacques Chirac in 2003 when England won the rugby World Cup
Jacques Chirac in 1998 when France won the football World Cup
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"This is a victory for Europe."
Jacques Chirac in 2003 when England won the rugby World Cup