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MEPs reject EU spending cuts and demand extra £1.7bn from British taxpayers
MEPs have rejected cuts to European Union budgets agreed at an all-night summit last month and have demanded that national governments pay an extra £14 billion in spending for this year.
The European Parliament demands, which hold the spending deal hostage, could cost the British taxpayer up to £1.7 billion in extra EU contributions in 2013 at a time of deep cuts to domestic public spending. Photo: Reuters
By Bruno Waterfield, Brussels
2:35PM GMT 13 Mar 2013
Five weeks ago, at a marathon 32-hour Brussels summit, David Cameron secured a reduction in long-term European spending plans, the first in the EU's history.
The Prime Minister hailed the EU cuts as the implementation of long overdue austerity in Brussels at a time when national governments were cutting back on spending.
The European Parliament demands, which hold the spending deal hostage, could cost the British taxpayer up to £1.7 billion in extra EU contributions in 2013 at a time of deep cuts to domestic public spending.
"The European Parliament cannot accept the proposal from the member states without the fulfilment of certain essential conditions," said Martin Schulz, the speaker of the EU assembly.
While accepting the overall figures for EU financing for the seven years 2014 to 2020, the parliament has tied its agreement to a number of conditions including "unpaid payment claims" for this year, a bill that would represent a 12 per cent increase in national contributions.
MEPs have also demanded a "compulsory, legally binding and comprehensive revision" of EU spending cuts in 2017 that would be decided by a vote, stripping Britain of its veto.
The parliament is also seeking more "flexibility" in spending to allow the EU to reach expenditure ceilings and to roll cash over from one year to another between 2014 and 2020.
Most controversially, and without any prospect of agreement, MEPs have demanded that the EU create new taxes to fund the Brussels budget.
"These issues are of fundamental importance for the parliament. The European Parliament will not accept the proposal from the member states unless there is movement on all of these issues," said Mr Schulz.
Diplomats have ruled out any talks on new EU taxes but have signalled that negotiations could take place on other issues, including extra spending for 2013.
Martin Callanan MEP, the leader of European Conservatives, accused the majority of the parliament, which rejected the cuts by 506 to 161 votes, of "flying in the face of public opinion".
"The European Parliament is engaging in the worst kind of posturing, which makes it look completely out of touch with reality," he said.
"The EU budget deal was a reasonable compromise between many competing demands."
Under the Lisbon Treaty, which entered into force in late 2009, MEPs have new powers to block EU spending deals agreed by national governments whose annual contributions are the source of Brussels funding.
Following the February 8 agreement to cut EU spending by £30 billion between 2014 and 2020, Mr Cameron warned MEPs not to try to override governments that were responsible to national parliaments for budget expenditure.
The parliament was forced to back down on plans to hold a secret ballot on the spending agreement after accusations that MEPs were trying to evade accountability to their voters.
MEPs have rejected cuts to European Union budgets agreed at an all-night summit last month and have demanded that national governments pay an extra £14 billion in spending for this year.
The European Parliament demands, which hold the spending deal hostage, could cost the British taxpayer up to £1.7 billion in extra EU contributions in 2013 at a time of deep cuts to domestic public spending. Photo: Reuters
By Bruno Waterfield, Brussels
2:35PM GMT 13 Mar 2013
Five weeks ago, at a marathon 32-hour Brussels summit, David Cameron secured a reduction in long-term European spending plans, the first in the EU's history.
The Prime Minister hailed the EU cuts as the implementation of long overdue austerity in Brussels at a time when national governments were cutting back on spending.
The European Parliament demands, which hold the spending deal hostage, could cost the British taxpayer up to £1.7 billion in extra EU contributions in 2013 at a time of deep cuts to domestic public spending.
"The European Parliament cannot accept the proposal from the member states without the fulfilment of certain essential conditions," said Martin Schulz, the speaker of the EU assembly.
While accepting the overall figures for EU financing for the seven years 2014 to 2020, the parliament has tied its agreement to a number of conditions including "unpaid payment claims" for this year, a bill that would represent a 12 per cent increase in national contributions.
MEPs have also demanded a "compulsory, legally binding and comprehensive revision" of EU spending cuts in 2017 that would be decided by a vote, stripping Britain of its veto.
The parliament is also seeking more "flexibility" in spending to allow the EU to reach expenditure ceilings and to roll cash over from one year to another between 2014 and 2020.
Most controversially, and without any prospect of agreement, MEPs have demanded that the EU create new taxes to fund the Brussels budget.
"These issues are of fundamental importance for the parliament. The European Parliament will not accept the proposal from the member states unless there is movement on all of these issues," said Mr Schulz.
Diplomats have ruled out any talks on new EU taxes but have signalled that negotiations could take place on other issues, including extra spending for 2013.
Martin Callanan MEP, the leader of European Conservatives, accused the majority of the parliament, which rejected the cuts by 506 to 161 votes, of "flying in the face of public opinion".
"The European Parliament is engaging in the worst kind of posturing, which makes it look completely out of touch with reality," he said.
"The EU budget deal was a reasonable compromise between many competing demands."
Under the Lisbon Treaty, which entered into force in late 2009, MEPs have new powers to block EU spending deals agreed by national governments whose annual contributions are the source of Brussels funding.
Following the February 8 agreement to cut EU spending by £30 billion between 2014 and 2020, Mr Cameron warned MEPs not to try to override governments that were responsible to national parliaments for budget expenditure.
The parliament was forced to back down on plans to hold a secret ballot on the spending agreement after accusations that MEPs were trying to evade accountability to their voters.
