I’ve refrained from jumping into the argument of the £1.7bn demanded by the EU, up to now
A UK government spokesman has said that we will be seeking a meeting with Europe over the demand and want it before the Dec 1 deadline for payment.
As you can imagine there are many over here going potty over this. The reality however makes for a different perspective and as usual it’s never as clear cut as it seems. It was my impression that not only were these budget changes known about and agreed, but we’ve been receivers of this rebate ourselves for many years.
The budget system is complicated (as is everything in Europe) and basically we get a percentage amount back (rebate) of the difference between what we put in and what we get back. For example, say our new budget obligations to the EU are £5bn but we receive back £2bn in subsidies. After that we then get a percentage back on the difference of £3bn (if anyone knows better then please feel free to correct me).
By the looks of things it’s just a recall of an overpayment of the rebate that’s changed due to the new EU GDP calculations.
Of course not many people will want to hear the stark truth of the matter so expect the political football to be kicked around about this and a lot of shouting from rooftops about how unfair it all is. Cameron and his cronies (from Netherlands, Greece, Cyprus, Italy and a few more) will be vociferous about how he’s going to fight it in the name of justice for the UK and other European countries affected, but I’ll bet you the cheque has already been written and is in his in-tray awaiting his signature.
For those that don’t know the workings of the UK, consider this a taste of how things are going to shape up ahead of general election next year.
