Brussels, 25/10/2012 (Agence Europe) - Denmark's Prime Minister Helle Thorning Schmidt announced on Thursday 25 October that Denmark was ready to place its veto on a compromise on the multiannual financial framework 2014-2020 unless it were given a €150 million reduction per year on its contribution to the EU budget. Obtaining this rebate is a “red line” for the Danish government.
Denmark finds the system unjust. It does not see why it should contribute the most to the EU budget (its net position is -0.34% of GNP in 2011, like Germany) and pay for the rebates of other rich countries. Denmark pays a little over 2% of the EU's total budget. For every €4 that it pays to the EU budget, the others pay around €3. Denmark is in favour of abolishing the various rebates but, as there is no unanimity on this matter (the United Kingdom is blocking any debate on its cheque), it is calling for its contribution to be reduced. On the spending side, Denmark is calling for the 2014-2020 budget to be capped at 1% of Gross National Income (GNI), which would require a reduction of €135 billion on the initial European Commission proposal. (LC/transl.jl)