Brussels, 27/10/2014 (Agence Europe) - European Budget Commissioner Jacek Dominik said on Monday 27 October that he had been “surprised” by the United Kingdom's outburst at the last European Council, with Prime Minister David Cameron refusing to pay the €2.1 billion increase in his country's contribution to the EU budget (see EUROPE 11184). The European Commission indicated, too, that the United Kingdom could face fines if it did not pay the adjustment to its contribution by 1 December.
It is hard to believe that, following the Commission's recalculation, Cameron was unaware of the extra €2.1 billion that Britain would be asked to contribute to the 2014 budget. This fit of pique would seem to be aimed more at the increasingly europhobic British electorate. Unleashing this attack on the European budget, Cameron was looking, rather, to appease the anti-EU voters in the hope of success in the forthcoming general election in May 2015.
“Yes, I was surprised by this reaction. Because, until then, we had not received any indication from the British administration that this figure posed the country a problem”, Dominik told the press. Discussions had taken place at various levels during which the United Kingdom had the opportunity to query the statistics provided, the commissioner added. He stated that the UK “checks every Commission table. … At no time did the United Kingdom express concern on this specific matter, either at the Ecofin Council or in the two technical meetings”. The UK, like all the other member states, was informed of the revision at the Council budgetary committee meeting on 17 October.
No delay possible unless …
Answering questions from the press on possible ways to give the UK some time, Dominik said that “in line with the current acquis, no delay is possible”. The adjusted contributions have to be paid by 1 December at the latest. To change the rules, “there will have to be a legislative procedure, approved by a qualified majority of member states, to amend the acquis relating to own resources. This would be very complicated. It could open a Pandora's box”, he said. He pointed out that the agreement on own resources had been approved unanimously and passed by every national parliament. This is the first time that the legislation in this area has been challenged by a country, Dominik stated. The decision on own resources and the implementing regulation relate also to the UK rebate, the Commission noted. “The United Kingdom is being asked to pay €2.1 billion but also under discussion is another piece of legislation which hands back over €500 million to the United Kingdom in adjustment under the British rebate”, the commissioner said. In mid-May 2015, the UK will receive a rebate of more than half a billion euros. “You cannot just, one day, call into question the system that requires you to pay an additional contribution, because of the figures you yourself have provided, and, the next, say 'I like the other strand of this legislation that allows me to get back half a billion euro, on the basis of the same figures”, Dominik stressed. The revised calculation of GNI (gross national income) is based on figures provided by the British government. The commissioner suggested that it would be difficult to explain to the other countries that the system suits you fine on Monday but is no longer to your tastes on Tuesday.
Penalties possible
“The newly calculated contributions must be paid to the EU budget by 1 December. Otherwise, the Commission will send out a letter stating the outstanding sums. We will await the member state's response. If in the following weeks or months, the situation does not improve, the European Commission will apply late-payment penalties”, the commissioner warned.
Technical adjustment. The commissioner pointed out that it is the member states' own statistical offices and Eurostat which, in the autumn of each year, hold discussions to define the GNI and the components of the GNI. This is a purely technical and mathematical exercise. Why, then, is the adjustment for 2014 so significant for some countries, such as the UK? Quite simply, it is because the Commission took the 2002-2013 figures (and even the 1995-2013 figures for Greece) into account. If counting is done over the whole year, €300 million per year would be required of the UK out of a total contribution of some €17 billion. And if the UK has paid less than that, this means that other countries have paid too much and, so, have to be reimbursed. This is the case for, for example, France (which will be paid back €1 billion), Germany (€779 million) and Denmark (€321 million). The misfortune of some … (our translation throughout) (LC)