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EU contribution: Cameron will have to pay up, says Farage EU contribution: Cameron will have to pay up, says Farage
(about 1 hour later)
Nigel Farage has claimed that David Cameron will be forced to pay out an extra £1.7 billion into the EU budget by the end of next month despite the government saying the extra demand was not acceptable. Nigel Farage has claimed that David Cameron will be forced to pay out an extra £1.7bn into the EU budget by the end of next month despite the government saying the extra demand was not acceptable.
The Ukip leader’s comments, which he says is a reflection of Britain’s impotence in Europe, will increase the pressure on David Cameron following Thursday night’s disclosure that Britain has been ordered to pay the money because Britain’s economy is doing better compared with other EU economies. The Ukip leader’s comments, which he says is a reflection of Britain’s impotence in Europe, will increase the pressure on the prime minister following Thursday night’s disclosure that Britain has been ordered to pay the money because its economy is performing better than other EU economies.
A government source said the demand is “not acceptable”. It remained unclear on Friday morning whether the British government would challenge the EU demand in the courts,an option the Dutch government are reportedly exploring. A government source said the demand was “not acceptable”. It remained unclear on Friday morning whether the British government would challenge the EU demand in the courts,an option the Dutch government is reportedly exploring.
But on an LBC radio phone-in on Friday morning, Farage said that Cameron will have little chance but to go along with the demand, which will have to be paid in December. But on an LBC radio phone-in on Friday morning, Farage said Cameron would have little option but to go along with the demand, which will have to be paid in December.
“Of course he will pay up. These are the rules, the contributions to the European Union was a very complex formula and part of it is a measurement of your GDP against everybody else’s. There’s nothing he can do,” he said.“Of course he will pay up. These are the rules, the contributions to the European Union was a very complex formula and part of it is a measurement of your GDP against everybody else’s. There’s nothing he can do,” he said.
But prominent, vocal Tory critics of Europe continued to demand that Cameron makes a stand. But prominent Tory critics of Europe continued to demand that Cameron makes a stand.
Conservative backbencher John Redwood said the surcharge “offended all our principles of natural justice and fair taxation”.Conservative backbencher John Redwood said the surcharge “offended all our principles of natural justice and fair taxation”.
“It is a very large increase in tax on the British people charged retrospectively without their agreement,” he told Radio 4’s Today programme.“It is a very large increase in tax on the British people charged retrospectively without their agreement,” he told Radio 4’s Today programme.
He suggested the UK should simply refuse to pay the extra amount and that parliament should be asked to pass a law declaring the payment illegal.He suggested the UK should simply refuse to pay the extra amount and that parliament should be asked to pass a law declaring the payment illegal.
“The British people will not want to send another £1.7bn to the European Union by a very big majority and so the British government just says it won’t pay,” he said.“The British people will not want to send another £1.7bn to the European Union by a very big majority and so the British government just says it won’t pay,” he said.
Tory Eurosceptic Mark Pritchard said Cameron should consider bringing forward a referendum on whether the UK should leave the EU, which David Cameron has promised in 2017. Tory Eurosceptic Mark Pritchard said Cameron should consider bringing forward a referendum on whether the UK should leave the EU, which the prime minister has promised in 2017.
British and European commission officials confirmed that the Treasury had been told last week that budget contribution calculations based on gross national income (GNI) adjustments carried out by Eurostat, the EU statistics agency, had exposed a huge discrepancy between what Britain had been asked to contribute and what it should be paying, because of the UK’s recovery.British and European commission officials confirmed that the Treasury had been told last week that budget contribution calculations based on gross national income (GNI) adjustments carried out by Eurostat, the EU statistics agency, had exposed a huge discrepancy between what Britain had been asked to contribute and what it should be paying, because of the UK’s recovery.
The bombshell, first reported by the Financial Times, was dropped into the middle of an EU summit in Brussels where Cameron and 27 other leaders were mired in tough negotiations over climate-change policy and attempts to agree big reductions in greenhouse gas emissions by 2030.The bombshell, first reported by the Financial Times, was dropped into the middle of an EU summit in Brussels where Cameron and 27 other leaders were mired in tough negotiations over climate-change policy and attempts to agree big reductions in greenhouse gas emissions by 2030.
A Downing Street source said: “It’s not acceptable to just change the fees for previous years and demand them back at a moment’s notice. The European commission was not expecting this money and does not need this money and we will work with other countries similarly affected to do all we can to challenge this.”A Downing Street source said: “It’s not acceptable to just change the fees for previous years and demand them back at a moment’s notice. The European commission was not expecting this money and does not need this money and we will work with other countries similarly affected to do all we can to challenge this.”
The prime minister on Thursday evening conferred with Mark Rutte, the Dutch prime minister, as the Netherlands has also been ordered to pay more than €600m extra into the budget, while other countries such as Germany and France are likely to have excess contributions returned.The prime minister on Thursday evening conferred with Mark Rutte, the Dutch prime minister, as the Netherlands has also been ordered to pay more than €600m extra into the budget, while other countries such as Germany and France are likely to have excess contributions returned.
The commission told the various countries of the revamped figures on 17 October, EU officials said. They said the British had until 1 December to provide €2.1bn, roughly a fifth of the UK’s annual net contribution to the EU.The commission told the various countries of the revamped figures on 17 October, EU officials said. They said the British had until 1 December to provide €2.1bn, roughly a fifth of the UK’s annual net contribution to the EU.
The demand for the money is political dynamite for a prime minister wrestling with dilemmas over Britain’s future in Europe and broadly seen to be making increasingly Eurosceptic gestures to the restless backbenchers who want to deal with Nigel Farage’s Europe rejectionists.The demand for the money is political dynamite for a prime minister wrestling with dilemmas over Britain’s future in Europe and broadly seen to be making increasingly Eurosceptic gestures to the restless backbenchers who want to deal with Nigel Farage’s Europe rejectionists.
“The timing is far from ideal,” said Patrizio Fiorilli, spokesman for the EU budget commissioner. “But there are rules we have to follow.”“The timing is far from ideal,” said Patrizio Fiorilli, spokesman for the EU budget commissioner. “But there are rules we have to follow.”
“It’s crazy,” said Richard Corbett, a Labour MEP and former senior EU official. “This must be an automatic thing because politically the timing could not be worse.”“It’s crazy,” said Richard Corbett, a Labour MEP and former senior EU official. “This must be an automatic thing because politically the timing could not be worse.”
The request for the money comes as Cameron and his party, under pressure from Ukip to bolster their anti-EU credentials, are embroiled in fights with Brussels and other EU capitals over freedom of movement and immigration within the EU, and over Cameron’s insistence on rewriting the terms of Britain’s EU membership before putting a new deal to an in-out referendum by 2017 if he wins a second term next year.The request for the money comes as Cameron and his party, under pressure from Ukip to bolster their anti-EU credentials, are embroiled in fights with Brussels and other EU capitals over freedom of movement and immigration within the EU, and over Cameron’s insistence on rewriting the terms of Britain’s EU membership before putting a new deal to an in-out referendum by 2017 if he wins a second term next year.
Cameron has set great store on campaigning to reduce the overall EU budget, arguing that at a time of austerity and spending cuts all across Europe, the Brussels pot could not remain immune.Cameron has set great store on campaigning to reduce the overall EU budget, arguing that at a time of austerity and spending cuts all across Europe, the Brussels pot could not remain immune.
Eurostat arrived at the €2.1bn figure on the basis of new methods of calculating member states’ GNI since 1995, taking account of previously unreported or under-reported black economy elements, such as drug dealing and consumption or the sex industry. Eurostat arrived at the €2.1bn figure on the basis of new methods of calculating member states’ GNI since 1995, taking account of previously unreported or under-reported black economy elements, such as drug-dealing and consumption or the sex industry.
Eurostat concluded that the UK economy has been doing much better than previously assumed since 1995, relative to other European countries, and that British contributions needed to be upped.Eurostat concluded that the UK economy has been doing much better than previously assumed since 1995, relative to other European countries, and that British contributions needed to be upped.
“It changes the way contributions to the budget are calculated,” said Fiorilli. “Some member states have booming economies. Everyone can see the UK is growing much faster than others.”“It changes the way contributions to the budget are calculated,” said Fiorilli. “Some member states have booming economies. Everyone can see the UK is growing much faster than others.”
Fiorilli said that the commission and Eurostat use 1995 as the benchmark year for calculating the impact of GNI figures. “Member states including Britain insisted on this. It is their decision,” he said.Fiorilli said that the commission and Eurostat use 1995 as the benchmark year for calculating the impact of GNI figures. “Member states including Britain insisted on this. It is their decision,” he said.
The demand comes as part of what is known in Brussels as an amending budget proposal, a routine event that occurs regularly and is dependent on the ebb and flow of payments into the EU machine. There are currently a further six amending budgets on the table in Brussels, some of which may entail returning funds to Britain, meaning the overall bill could yet be cut. The demand comes as part of what is known in Brussels as an amending budget proposal, a routine event that occurs regularly and is dependent on the ebb and flow of payments into the EU machine. There are a further six amending budgets on the table in Brussels, some of which may entail returning funds to Britain, meaning the overall bill could yet be cut.
While the €2.1bn bill is theoretically due by 1 December, the amending budget also has to be endorsed by the 28 governments of the EU and by the European parliament, meaning it could run into resistance if Britain is able to marshal enough allies and given that there are many European governments reluctant to hand an easy victory to those campaigning to take the UK out of the EU.While the €2.1bn bill is theoretically due by 1 December, the amending budget also has to be endorsed by the 28 governments of the EU and by the European parliament, meaning it could run into resistance if Britain is able to marshal enough allies and given that there are many European governments reluctant to hand an easy victory to those campaigning to take the UK out of the EU.