EU moves to double British contribution

Britain’s contributions to the European Union would virtually double under spending plans unveiled today.

The UK rebate negotiated 20 years ago and worth more than £2bn (€3bn) a year to the British Treasury would disappear under proposals for future spending produced by the European Commission.

The plans would turn Britain into Europe’s biggest paymaster – even though the country is nowhere near the top of the wealth league table in a 25-nation EU.

The proposals were immediately condemned as “unnegotiable” by a British government spokesman.

Britain’s two EU commissioners, Neil Kinnock and Chris Patten, refused to put their names to the plans presented by EU budget commissioner, Michaele Schreyer.

Today’s plans launch a new battle for British prime minister Tony Blair in Europe, and provide fresh ammunition for Euro sceptics.

Mr Patten said: “I am deeply disappointed and concerned that the proposals will set back our ability to argue a positive European case in the UK.”

The British government spokesman said: “This proposal is not negotiable. It is ludicrous and manifestly unfair to suggest doubling the UK’s share of the EU bill while leaving more than £6bn (€9bn) a year flowing into French coffers from farm subsidies.”

He added: “The rebate is fully justified by all the data available. This proposal is a crude smokescreen by the Commission to divert attention from their bloated budget proposals.”

Former premier Margaret Thatcher won the highly-prized rebate in 1984, successfully arguing that Britain got a bad deal out of the EU budget system.

The EU farming system has been modernised hugely since the rebate was first granted – but the British government insists the country’s contribution to Brussels would still be unfairly high without the rebate system.