28/10/2010

Cameron Gears Up For EU Summit

As he prepares for Brussels, David Cameron has phoned European leaders ahead of his showdown to impose budgetary restraint at the two-day EU summit.

The Prime Minister spoke with French President Nicolas Sarkozy, European Council President Herman Van Rompuy, and his German counterpart Angela Merkel – whos German-led proposals impose strict fiscal discipline on Eurozone countries.

The summit is dominated by the "economic governance" agenda, with many smaller European countries against the France and Germany deal discussed at a bilateral summit last week.

The French and German deal ensures severe future sanctions for countries that breach budget deficit and debt limits. The Germans say, unless the rules are enshrined in changes to the European treaties, they will not be credible.

Britain has negotiated a "carve-out", ensuring sanctions could not apply.

However there is unease that a protracted European argument could distract the European Union from the UK's priorities.

At the summit, the Prime Minister will highlight the need to reflect the current financial realities that member nations are dealing with in the EU budget.

The Prime Minister described the 5.9% rise as "completely unacceptable".

The EU is currently entering an 18-month period of negotiation for the 2014-2020 budget.

(BMcN)

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