EU demands £400 per British family

By Bruno Waterfield, in Brussels, Andrew Porter and James Kirkup

The additional payment would take Britain’s annual EU contribution to more than £10 billion in 2012, the equivalent of £400 for every household.

The demand from the European Commission started a war of words, with Downing Street calling the request “ludicrous” and George Osborne, the Chancellor, accusing EU officials of having lost touch with reality. Last night the Government refused to say what, if any, increase in Britain’s contributions ministers were prepared to accept, prompting charges that they would eventually “roll over” and agree to hand over more taxpayers’ money.

In 2009, Britons paid £5.3 billion to the EU budget, with the payment rising to £9.2 billion in 2010.

Last year, Mr Cameron promised to fight for a “cut or a freeze” in the 2011 EU budget, but was eventually forced to settle for a rise of 2.9 per cent, costing Britain another £450 million.

The Commission has made a formal request to members for a £5.5 billion budget rise that would take EU spending next year to £117 billion.

Mr Osborne said the demand for more money was “completely unacceptable”, especially at a time when Britain was cutting spending to balance its own budget. “The European Commission need a reality check,” he said. “Europe needs to get in touch with reality and Brussels needs to look at what is happening in countries like Britain, and other countries as well in Europe, where we are all having to live within our means.”

British officials said Mr Cameron would seek to form an alliance with leaders from countries including France, Germany, Holland and Sweden to fight the planned rise. Last night a Downing Street source said: “The Commission has come up with a ludicrous figure. We see this is an opening salvo, but we have already begun reviving the group of leading nations to combat it and demand a lower figure.”

German and French leaders last year backed Mr Cameron’s call for a freeze in the 2011 EU budget, but after a power struggle with the Commission and the European Parliament, the leaders were eventually forced to accept the rise.

Wary of raising false expectations on this year’s budget fight, government spokesmen were yesterday careful not to say what, if any, increase Britain was prepared to accept. Douglas Carswell, a Conservative MP, said he was concerned that ministers would ultimately agree to pay more to Brussels: “I fear it’s a question of 'when’ and not 'if’ they roll over.”

Nigel Farage, the leader of the UK Independence Party, said: “The Commission have shown they have no respect for the British taxpayer with their latest demands so it’s time for Mr Cameron to stop with the talking and take action.”

The Commission demand ignores pleas from Mr Cameron, plus Angela Merkel of Germany and Nicolas Sarkozy of France for the EU to reduce Brussels’ expenditure in line with national cuts.

Critics of the EU claim it is more interested in enlarging European bureaucracy than in tackling the economic crisis in eurozone countries. Anger is growing among Europe’s governments over Brussels’ rocketing spending, especially with the creation of new institutions such as the EU foreign service.

Janusz Lewandowski, the EU budget commissioner who announced the increases yesterday, mocked British comments about austerity measures.

“Someone is criticising us, I have to say the UK budget is growing this year. Is this austerity?” Mr Lewandowski asked.
Telegraph