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| Nick Clegg's European ally calls for Britain's rebate to be scrapped | Nick Clegg's European ally calls for Britain's rebate to be scrapped |
| (8 days later) | |
| Nick Clegg has slapped down the leader of the Liberal group in the European Parliament after he called for Britain's multibillion-pound EU rebate to be scrapped. | Nick Clegg has slapped down the leader of the Liberal group in the European Parliament after he called for Britain's multibillion-pound EU rebate to be scrapped. |
| Hours after Guy Verhofstadt called for the abolition, as part of a plan to strip EU leaders of their powers to set the EU budget, the Liberal Democrats said Clegg was "absolutely wedded" to the rebate. | Hours after Guy Verhofstadt called for the abolition, as part of a plan to strip EU leaders of their powers to set the EU budget, the Liberal Democrats said Clegg was "absolutely wedded" to the rebate. |
| A senior Liberal Democrat source said: "Nick Clegg and Guy Verhofstadt are both Liberals and have known each other for some time. But their views on Europe are very different. Verhofstadt is a federalist and Nick Clegg is not. | A senior Liberal Democrat source said: "Nick Clegg and Guy Verhofstadt are both Liberals and have known each other for some time. But their views on Europe are very different. Verhofstadt is a federalist and Nick Clegg is not. |
| "Nick is absolutely wedded to keeping Britain's EU rebate. Nick is absolutely solid on the rebate." | "Nick is absolutely wedded to keeping Britain's EU rebate. Nick is absolutely solid on the rebate." |
| The source said Clegg had lobbied European leaders from the EU's Liberal group, such as the Dutch prime minister Mark Rutte, who are formally involved in the negotiations rather than Verhofstadt. | The source said Clegg had lobbied European leaders from the EU's Liberal group, such as the Dutch prime minister Mark Rutte, who are formally involved in the negotiations rather than Verhofstadt. |
| The source said: "Mark Rutte has been a good ally in the budget negotiations. You can find politicians of all parties in other European countries who want the British rebate to be scrapped. It doesn't change anything. Nick Clegg, like David Cameron, thinks we should keep it and we will." | The source said: "Mark Rutte has been a good ally in the budget negotiations. You can find politicians of all parties in other European countries who want the British rebate to be scrapped. It doesn't change anything. Nick Clegg, like David Cameron, thinks we should keep it and we will." |
| The Lib Dems hit back at Verhofstadt after the leader of the Alliance of Liberals and Democrats for Europe (ALDE), called for the EU to be given powers to raise its own revenues as a way of ending what he called "this Turkish bazaar" in the negotiations. This would end the rebate. | The Lib Dems hit back at Verhofstadt after the leader of the Alliance of Liberals and Democrats for Europe (ALDE), called for the EU to be given powers to raise its own revenues as a way of ending what he called "this Turkish bazaar" in the negotiations. This would end the rebate. |
| "If own resources [tax revenues that go directly to the EU] are further developed then the rebate shall disappear," the former prime minister of Belgium said at the summit. The British rebate was worth €3.6bn in 2011. | "If own resources [tax revenues that go directly to the EU] are further developed then the rebate shall disappear," the former prime minister of Belgium said at the summit. The British rebate was worth €3.6bn in 2011. |
| "The whole income of the union shall be based on own resources. There are no national contributions. If the national contributions disappear in the future there is no rebate necessary." | "The whole income of the union shall be based on own resources. There are no national contributions. If the national contributions disappear in the future there is no rebate necessary." |
| ALDE is the third largest grouping in the European parliament, and its members include the British Liberal Democrats. | ALDE is the third largest grouping in the European parliament, and its members include the British Liberal Democrats. |
| The former Belgian prime minister spoke out as EU leaders met in despondent mood after Herman Van Rompuy, the president of the European council, presented a new set of budget figures late on Thursday night. He proposed a modest cut in the overall budget for 2014-20 from €973bn to €971bn. Van Rompuy proposed a €8bn rise in agricultural spending and a €10.6bn increase in cohesion funds to help develop poorer regions, mainly in eastern Europe. | The former Belgian prime minister spoke out as EU leaders met in despondent mood after Herman Van Rompuy, the president of the European council, presented a new set of budget figures late on Thursday night. He proposed a modest cut in the overall budget for 2014-20 from €973bn to €971bn. Van Rompuy proposed a €8bn rise in agricultural spending and a €10.6bn increase in cohesion funds to help develop poorer regions, mainly in eastern Europe. |
| The president of the European council proposed paying for these by cutting the Connecting Europe project to build up transport and energy links across the EU by €4.5bn. Cameron had pressed for this to be cut by €20bn. | The president of the European council proposed paying for these by cutting the Connecting Europe project to build up transport and energy links across the EU by €4.5bn. Cameron had pressed for this to be cut by €20bn. |
| A bid by Cameron to cut EU administration costs by €6bn was ignored. There were signs of tensions between France and Germany – the traditional motors of EU integration. Angela Merkel, the German chancellor, is pressing for restraint while François Hollande, the French president, is demanding more funds for agriculture. | A bid by Cameron to cut EU administration costs by €6bn was ignored. There were signs of tensions between France and Germany – the traditional motors of EU integration. Angela Merkel, the German chancellor, is pressing for restraint while François Hollande, the French president, is demanding more funds for agriculture. |
| Cameron, who appears to be forming something of an alliance with Merkel, said the Van Rompuy plans did not go far enough. He is demanding a further €50bn in cuts. | Cameron, who appears to be forming something of an alliance with Merkel, said the Van Rompuy plans did not go far enough. He is demanding a further €50bn in cuts. |
| As he arrived for the summit on Friday morning, Cameron said: "I don't think there's been enough progress so far. There really is a problem that there hasn't been the progress in cutting back proposals for additional spending. | As he arrived for the summit on Friday morning, Cameron said: "I don't think there's been enough progress so far. There really is a problem that there hasn't been the progress in cutting back proposals for additional spending. |
| "It isn't the time for tinkering. It isn't the time for moving money from one part of the budget to another. We need an affordable spending cut. That's what's happening at home and that's what needs to happen here." | "It isn't the time for tinkering. It isn't the time for moving money from one part of the budget to another. We need an affordable spending cut. That's what's happening at home and that's what needs to happen here." |
| Verhofstadt, who believes the EU should be turned into a federalist United States of Europe, wants to overhaul the whole system and strip EU leaders of their right to set the budget by ending national contributions to EU coffers. He would do that by raising the amount of tax revenue that goes automatically to the EU. | Verhofstadt, who believes the EU should be turned into a federalist United States of Europe, wants to overhaul the whole system and strip EU leaders of their right to set the budget by ending national contributions to EU coffers. He would do that by raising the amount of tax revenue that goes automatically to the EU. |
| Verhofstadt called it "a budget based on national contributions so this Turkish bazaar can stop finally. If there is a direct financing with own resources in the future – be it VAT, be it airport duties, be it taxation on agricultural products, be it the financial transaction tax or even a carbon tax – then this stops." | Verhofstadt called it "a budget based on national contributions so this Turkish bazaar can stop finally. If there is a direct financing with own resources in the future – be it VAT, be it airport duties, be it taxation on agricultural products, be it the financial transaction tax or even a carbon tax – then this stops." |
| He said failure to agree a budget would serve as a reminder that the eurozone crisis was caused by the failure to agree a political union. | He said failure to agree a budget would serve as a reminder that the eurozone crisis was caused by the failure to agree a political union. |
| "It is a bad message for the ongoing crisis because the main source of the euro crisis is not Greece," Verhofstadt said. "The main source is the lack of a real economic, fiscal and political union. The main instrument for a real economic and political union is a budget. A budget of 1% [the proportion of the current budget as a share of EU GDP] is not very convincing for the markets." | "It is a bad message for the ongoing crisis because the main source of the euro crisis is not Greece," Verhofstadt said. "The main source is the lack of a real economic, fiscal and political union. The main instrument for a real economic and political union is a budget. A budget of 1% [the proportion of the current budget as a share of EU GDP] is not very convincing for the markets." |
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