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| Cameron remains defiant on EU budget as he arrives for Brussels summit | Cameron remains defiant on EU budget as he arrives for Brussels summit |
| (5 months later) | |
| David Cameron says he is "fighting very hard" for a good deal for British taxpayers as he prepares to tell the president of the European council in Brussels that a compromise plan for the EU budget is unacceptable because it includes drastic cuts to the UK's multibillion-pound rebate. | David Cameron says he is "fighting very hard" for a good deal for British taxpayers as he prepares to tell the president of the European council in Brussels that a compromise plan for the EU budget is unacceptable because it includes drastic cuts to the UK's multibillion-pound rebate. |
| The prime minister, who told MPs on Wednesday he would not sanction any further cuts to the €3.6bn (£2.9bn) annual rebate, is to raise the highly sensitive matter at the start of Thursday's meeting with Herman Van Rompuy. | The prime minister, who told MPs on Wednesday he would not sanction any further cuts to the €3.6bn (£2.9bn) annual rebate, is to raise the highly sensitive matter at the start of Thursday's meeting with Herman Van Rompuy. |
| As he arrived in Brussels for the crucial summit, Cameron said: "These are very important negotiations. Clearly at a time when we are making difficult decisions at home over public spending it would be quite wrong – it is quite wrong – for there to be proposals for this increased extra spending in the EU. So we are going to be negotiating very hard for a good deal for Britain's taxpayers, for Europe's taxpayers, and to keep the British rebate." | As he arrived in Brussels for the crucial summit, Cameron said: "These are very important negotiations. Clearly at a time when we are making difficult decisions at home over public spending it would be quite wrong – it is quite wrong – for there to be proposals for this increased extra spending in the EU. So we are going to be negotiating very hard for a good deal for Britain's taxpayers, for Europe's taxpayers, and to keep the British rebate." |
| Cameron was first in line this morning to meet European Commission president José Manuel Barroso and Van Rompuy, the summit chairman. | Cameron was first in line this morning to meet European Commission president José Manuel Barroso and Van Rompuy, the summit chairman. |
| A Downing Street spokesman said the first bilateral meeting between Cameron and Van Rompuy lasted for 30 to 35 minutes. | A Downing Street spokesman said the first bilateral meeting between Cameron and Van Rompuy lasted for 30 to 35 minutes. |
| "The prime minister set out our position that while the latest proposals were a step in the right direction they did not go far enough. That we think more can be done to rein in spending. He also set out the UK's position on the rebate that it was fully justified and we did not support any changes. | "The prime minister set out our position that while the latest proposals were a step in the right direction they did not go far enough. That we think more can be done to rein in spending. He also set out the UK's position on the rebate that it was fully justified and we did not support any changes. |
| "It was clear that there was a long way to go before we had a deal that reflected the difficult decisions being taken by member states." | "It was clear that there was a long way to go before we had a deal that reflected the difficult decisions being taken by member states." |
| Other EU leaders will be ushered in throughout the day to see the two presidents as part of an unusual pre-summit effort to avoid deadlock when the summit gets under way on Thursday night over dinner. | Other EU leaders will be ushered in throughout the day to see the two presidents as part of an unusual pre-summit effort to avoid deadlock when the summit gets under way on Thursday night over dinner. |
| British sources fear there willl not be a breakthrough at the summit, which could last into the weekend, as two core groups of countries line up to reject a proposal by Van Rompuy to cut the commission's planned €1,053.2bn budget to €973.2bn. | British sources fear there willl not be a breakthrough at the summit, which could last into the weekend, as two core groups of countries line up to reject a proposal by Van Rompuy to cut the commission's planned €1,053.2bn budget to €973.2bn. |
| Cameron accepts that the Van Rompuy plan, which covers the "commitment ceiling" akin to a credit card limit, represents a substantial cut on the original commission proposal. Source say Van Rompuy has acknowledged Britain's demand for an inflation freeze in the budget, which will cover the years 2014-20. | Cameron accepts that the Van Rompuy plan, which covers the "commitment ceiling" akin to a credit card limit, represents a substantial cut on the original commission proposal. Source say Van Rompuy has acknowledged Britain's demand for an inflation freeze in the budget, which will cover the years 2014-20. |
| But the UK government is concerned by his plan to ask every EU country, including the UK, to contribute to the UK rebate. Sources believe this could cut the rebate by as much as 25%. | But the UK government is concerned by his plan to ask every EU country, including the UK, to contribute to the UK rebate. Sources believe this could cut the rebate by as much as 25%. |
| Paris has rejected the Van Rompuy proposal out of hand on the grounds that it would cut €25bn from the common agricultural policy (Cap) which benefits France. Poland and Spain, beneficiaries of structural funds which fund infrastructure developments in poorer regions, have also rejected the compromise. | Paris has rejected the Van Rompuy proposal out of hand on the grounds that it would cut €25bn from the common agricultural policy (Cap) which benefits France. Poland and Spain, beneficiaries of structural funds which fund infrastructure developments in poorer regions, have also rejected the compromise. |
| Cameron showed he would fight hard to retain the rebate when he was asked on Wednesday by the Tory MP David Nuttall to give a commitment that he would not agree to further reductions. "I can certainly give [you] that assurance," the prime minister said. | Cameron showed he would fight hard to retain the rebate when he was asked on Wednesday by the Tory MP David Nuttall to give a commitment that he would not agree to further reductions. "I can certainly give [you] that assurance," the prime minister said. |
| "The rebate negotiated by Margaret Thatcher is an incredibly important part of Britain's position in Europe and making sure that we get a fair deal. It is absolutely extraordinary that the last government gave away almost half that rebate and we have never heard one word of apology or regret for the fact that however hard we fight in Europe – and I will fight incredibly hard this week for a good deal – they have cut away our footing by giving away half the rebate." | "The rebate negotiated by Margaret Thatcher is an incredibly important part of Britain's position in Europe and making sure that we get a fair deal. It is absolutely extraordinary that the last government gave away almost half that rebate and we have never heard one word of apology or regret for the fact that however hard we fight in Europe – and I will fight incredibly hard this week for a good deal – they have cut away our footing by giving away half the rebate." |
| Tony Blair agreed to significant cuts to the rebate when he chaired the last seven-year budget negotiations during Britain's EU presidency in 2005 after the expansion of the EU into eastern Europe the previous year. Without the changes, Britain would have become one of the EU's largest net beneficiaries, paid for largely by the new member states, whose accession was the realisation of Thatcher's dream of enlargement. | Tony Blair agreed to significant cuts to the rebate when he chaired the last seven-year budget negotiations during Britain's EU presidency in 2005 after the expansion of the EU into eastern Europe the previous year. Without the changes, Britain would have become one of the EU's largest net beneficiaries, paid for largely by the new member states, whose accession was the realisation of Thatcher's dream of enlargement. |
| Cameron's decision to signal that he planned to fight hard to retain the rebate did not cause much surprise in Brussels. Some interpreted his intervention as cover for a possible UK climbdown on the overall level of the EU budget. He wants that to be subject to an inflation freeze, but has acknowledged that Britain's net contributions will rise regardless of the outcome of the negotiations because the addition of 12 new member states since 2004 means that rich countries such as Britain will have to contribute more to the EU. | Cameron's decision to signal that he planned to fight hard to retain the rebate did not cause much surprise in Brussels. Some interpreted his intervention as cover for a possible UK climbdown on the overall level of the EU budget. He wants that to be subject to an inflation freeze, but has acknowledged that Britain's net contributions will rise regardless of the outcome of the negotiations because the addition of 12 new member states since 2004 means that rich countries such as Britain will have to contribute more to the EU. |
| Cameron is likely to have to give ground on his demand for Van Rompuy to go further in his cuts by proposing a lower than expected "payment ceiling" – the cap on what the EU will actually pay out. This is seen as highly unlikely. | Cameron is likely to have to give ground on his demand for Van Rompuy to go further in his cuts by proposing a lower than expected "payment ceiling" – the cap on what the EU will actually pay out. This is seen as highly unlikely. |
| French officials expect Van Rompuy to increase Cap spending while maintaining the same overall level of cuts to the original commission proposal. Any increases in Cap spending lead to automatic increases in Britain's rebate. | French officials expect Van Rompuy to increase Cap spending while maintaining the same overall level of cuts to the original commission proposal. Any increases in Cap spending lead to automatic increases in Britain's rebate. |
| Paris is also indicating that it expects a plan B to kick in at the summit, in which Van Rompuy declares he cannot broker a deal and will instead summon EU leaders to reconvene next year to discuss the budget. Van Rompuy's officials insist there is no plan B. | Paris is also indicating that it expects a plan B to kick in at the summit, in which Van Rompuy declares he cannot broker a deal and will instead summon EU leaders to reconvene next year to discuss the budget. Van Rompuy's officials insist there is no plan B. |
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