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EU Commissioner Lord Hill urges calm on £1.7bn tax bill EU Commissioner Lord Hill urges calm on £1.7bn tax bill
(about 1 hour later)
New European Commissioner Lord Hill has called for a period of calm in the row over David Cameron's refusal to pay a £1.7bn tax-contribution bill to the EU. New European Commissioner Lord Hill has called for a period of calm in the row about David Cameron's refusal to pay a £1.7bn tax-contribution bill to the EU.
In his first broadcast interview since taking the job, he told BBC Radio 4's Today programme he wanted the UK to remain a member of a reformed EU. In his first broadcast interview since taking the job, he also said the question of the UK's EU membership was a "boil that needs to be lanced".
He described the question of whether the UK remains in the EU as a "boil that needs to be lanced". Mr Cameron has said the UK will not pay the EU surcharge by 1 December.
Mr Cameron has said the UK would not pay the EU surcharge by 1 December. Treasury sources said Chancellor George Osborne would continue to demand a cut in the size of the EU's payment demand.
In his new role as European Commissioner for financial services, Lord Hill said he was required to act in the interests of all the EU's 28 states, not just promote UK views. In a meeting with EU finance ministers, Mr Osborne will also press for any payment to be delayed or phased in.
But a final agreement is not expected to be reached, the BBC's assistant political editor Norman Smith said.
Last month, David Cameron reacted angrily to the bill presented to the government by the EU for £1.7bn (2.1bn euros).
'Calm the situation''Calm the situation'
Earlier in the month, David Cameron reacted angrily to a bill presented to the government by the union for £1.7bn (2.1bn euros). The bill is calculated to determine how much each member state should contribute in tax, based on how well their individual economy has performed.
The bill is calculated to determine how much each member state should contribute in tax, based on how well their individual economy has performed. Mr Cameron said he would not pay the money by the 1 December deadline as set out by the EU. Lord Hill told BBC Radio 4's Today programme: "It seems to me that this is one of those classic examples you get from time to time and where something that a group of people think are technical matters suddenly, and in this case for perfectly understandable reasons, become highly political.
But Lord Hill said: "It seems to me that this is one of those classic examples you get from time to time and where something that a group of people think are technical matters suddenly, and in this case for perfectly understandable reasons, become highly political.
"The sensible thing now is to try to calm the situation down, and to look at the facts, and to look at a practical solution to the challenges that various member states face.""The sensible thing now is to try to calm the situation down, and to look at the facts, and to look at a practical solution to the challenges that various member states face."
Lord Hill, who was appointed to his new post on 8 October, said a meeting of finance ministers later this week would go some way to finding that "practical solution". Lord Hill, who was appointed as European Commissioner for financial services on 8 October, said a meeting of finance ministers later this week would go some way to finding that "practical solution".
A referendum on EU membership has been promised by the prime minister if the Conservatives win the general election. In his new role, Lord Hill said he was required to act in the interests of all the EU's 28 states, not just promote UK views.
The EU debate in Britain was going through a "lively stage", he said, adding that other countries were having similar debates.
He acknowledged that EU institutions could seem "very remote" to some member states.
A referendum on EU membership has been promised by the prime minister if the Conservatives win a majority at the next general election.
Speaking on the wider issue of whether the UK should remain in the union, Lord Hill said he hoped the country would decide to do so.Speaking on the wider issue of whether the UK should remain in the union, Lord Hill said he hoped the country would decide to do so.
"My view is that on the back of a reform process Britain would want to choose to stay in the EU," he said. "My view is that on the back of a reform process, Britain would want to choose to stay in the EU," he said.
"Obviously that's a choice for the people of Britain, there's democratic process to go through if we have that referendum. But I think it is good to address that question, I think there is a boil that needs to be lanced.""Obviously that's a choice for the people of Britain, there's democratic process to go through if we have that referendum. But I think it is good to address that question, I think there is a boil that needs to be lanced."
Lord Hill's careerLord Hill's career