23 August, 2009

EU: the increasing rip-off


The Sunday Telegraph points out that in the UK Treasury’s European Union finances document, cunningly slid out after Parliament had risen for the summer, the net contributions to the EU of £4.1 billion are due to rise by more than half to £6.4 billion next year.

Just what we want in a recession. In large part it is because Tony Blair and Gordon Brown gave up Mrs Thatcher’s rebate. This rebate was because the Common Agricultural Policy favours inefficient (French) farmers. Blair and Brown came back from the summit saying it was a great deal for Britain because they had secured a reduction in agricultural payments overall. What they had in fact secured was the promise to look at agricultural payments, which the French have now decided are about right.

But unfortunately it is only half the story. Next year we are forecast to pay over £15 billion into the European Union. What we get back (ie the £9 billion which makes the net £6 billion) is dependent on their whim. If they want it to be spent on infrastructure projects it has to be. What the UK government would like is to use this £9 billion to reduce debt, but that is not permitted. And much of this money is dependent on 50/50 financing so we would have to spend £9 billion to get £9 billion back.

The figures can be seen at


on page 29.

No. Our payment to the EU is £15 billion. That is the amount we could save by leaving.

No comments: