Tuesday, October 28, 2014

Britain has been told it must pay an extra €2.1bn (£1.7bn) into the European Union budget by the end of next month because the UK economy is doing better relative to other European economies.
The demand is certain to be used against David Cameron by the growing camp who want the UK to quit the EU.
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. 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 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.

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