David Cameron books a seat on RAF jet for showdown on Europe budget

 
21 November 2012
WEST END FINAL

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David Cameron has torn up his diary to fly by RAF jet at dawn tomorrow for a battle over the European Union budget and to defend Britain’s prized rebate.

The Prime Minister had planned to arrive late afternoon by Eurostar for the crucial summit at which 27 leaders will argue over a seven-year budget worth up to a trillion euros.

But he switched plans to ensure he gets there by breakfast as it became clear that his pledge to deliver a budget freeze is on a knife-edge, to allow a full day of one-to-one negotiations before the formal summit even begins. Mr Cameron is determined to resist pressure from other leaders to sign up to an inflation-busting increase in European spending.

Ahead of the talks, British officials admitted that the UK net contribution to the EU may rise whatever is agreed, partly because of a tapering cut in the rebate agreed by Tony Blair. Brussels officials want the right to spend more than a trillion euros between 2014 and 2020, more than half of which would go on agriculture subsidies and funds for poorer countries.

EU President Herman Van Rompuy has suggested a lower ceiling of 973 billion euros (£783bn), but his compromise includes a formula that would reduce the value of the UK rebate.

Mr Cameron is determined to protect the rebate, secured by Margaret Thatcher in 1984 to stop Britain paying far more into the EU than comparable countries like France, which gets huge sums back in farming handouts. As it is, France pays 6.5 billion euros a year net and Britain pays 7.3 billion euros. But without the rebate, Britain would pay nearly 11 billion euros.

Officials say Mr Cameron is packing enough clothes to last until Sunday in the expectation of a fractious summit.

Latvia was the latest country to threaten to veto the budget today, as it demanded higher agricultural handouts. Its premier Valdis Dombrovskis said: “If our interests are completely ignored, we don’t exclude that possibility.” Denmark has also threatened a veto if it does not get a rebate like the UK’s.

Sweden wants to cut farming subsidies and switch cash to modern industry. “We need a modern budget for the future, not the Fifties,” Swedish EU affairs minister Birgitta Ohlsson said.

Germany agrees with Mr Cameron on the need to restrain EU spending but there are signs that Chancellor Angela Merkel shares the exasperation of some leaders at Mr Cameron’s refusal to countenance a rise. But a government spokesman said: “We are looking to get the best deal for the UK taxpayer. That means holding down the total level of spending and protecting the UK’s rebate.”

Finland’s European affairs minister, Alexander Stubb, commented: “There is a whole bunch of Tarzan-like chest-beating.” European analyst Claire Dheret thought any agreement “looks very unlikely”.

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