EU Wants An Extra £1.7bn Payment From UK

Written By Unknown on Jumat, 24 Oktober 2014 | 14.47

Britain is facing a demand from the European Union for an extra £1.7bn because of the success of the economy.

The increase would add almost a fifth to the UK's annual contribution of £8.6bn.

A spokesperson for the European Commission said it was fair because it was like personal taxation - the more a person earns, the more they have to pay.

Commission spokesperson  Patrizio Fiorilli said: "Britain's contribution reflects an increase in wealth, just as in Britain you pay more to the Inland Revenue if your earnings go up."

The demand is intended to reflect improvements to Britain's economy since 1995.

Video: Does EU Membership Benefit UK?

The change in each state's contribution is a result of changes in the way the EU calculates gross national income.

A Commission spokesman said it was mainly due to the fact that the economic strength of EU's member states had increased or decreased relative to each other.

Preliminary figures seen by the Financial Times suggest that Britain is facing the largest adjustment in the amount it is required to pay compared to other members states.

The Netherlands, another country that is being asked to pay more, is being asked for an extra £509m.

By contrast, France is due to receive a rebate of £0.8bn, Germany £618m, and Poland £250m.

Britain's surcharge is due for payment on 1 December - just days after the crunch Rochester and Strood by-election.

The vote to decide who takes the seat hangs on a knife edge with David Cameron's Tories struggling to fight off a challenge from anti-EU Ukip.

Mr Cameron held talks on Thursday evening with Dutch counterpart Mark Rutte, who is also facing a large demand for more cash, on what can be done to challenge the demands.

The surcharges are likely to overshadow a European Council summit in Brussels, where Mr Cameron is meeting leaders of the 27 other EU States, some of which are looking forward to reductions in their contributions.

Several Conservatives MEPs have already spoken out against the surcharge, saying Britain is being punished for its success.

Downing Street said the UK will be challenging the demand.

A source said: "It's not acceptable to just change the fees for previous years and demand them back at a moment's notice.

"The European Commission was not expecting this money and does not need this money and we will work with other countries similarly affected to do all we can to challenge this."


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