Blair calls for review of EU funding

Prime Minister Tony Blair has said he will not accept a reduction in Britain’s annual £3bn rebate from the European Union unless there is a debate about all EU funding.

Speaking as he met with the President of the European Parliament, Mr Blair said: “If you have a fundamental review of how Europe spends its money, then of course everything is open to debate. What is not open to debate is a situation where you go back to Britain being penalised.”

The row over the UK’s rebate ignited yesterday, when French President Jacques Chirac called for Britain to accept a reduced rebate from the European Union. Mr Chirac said that the UK should make a “gesture of solidarity” with other EU nations by re-negotiating the amount, which was first secured by Margaret Thatcher.

However, speaking at Downing Street last night, Mr Blair said: “First of all, Britain has been making a gesture, because over the past 10 years, even with the British rebate, we have been making a contribution to Europe two and a half times that of France.

“Without the rebate, it would have been fifteen times as much as France, so that is our gesture. And the reason why the rebate exists is because otherwise there would be this quite unfair proportion of British contribution.”

Mr Blair highlighted Europe’s common agricultural policy, which uses 40% of the EU budget, and only covers 5% of the population.

Chancellor Gordon Brown has supported the Prime Minister’s comments, telling BBC Radio 4’s ‘Today’ programme that the rebate was “not up for negotiation” and that the UK was prepared to use its veto if necessary.

Former European commissioner Neil Kinnock also supported Mr Blair’s decision. He said: “The best way to assist the poorer countries in the European Union is to profoundly and fundamentally change the Common Agricultural Policy.”

However, Shadow Chancellor George Osbourne said it was “not good enough” for Mr Blair to say that he would not negotiate away the rebate. He said: “What he needs to say is that he will not diminish its value in any way and that there will be concessions and no fudging. The British taxpayer already pays enough to Europe. They must not pay any more.”

(KMcA/SP)