EU 2012 budget: U.K. says 2% increase is "excellent deal"

19 November 2011 Last updated at 17:07
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EU 2012 budget: UK says 2% increase is 'excellent
deal'

The spending plans are paid for
by national EU budget contributions
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The government says it has helped
secure an "excellent deal for the UK" following its negotiations over the 2012
EU budget.

The spending plans were set at an inflation-only rise of 2% to 129bn euros
(£110bn) after 15 hours of talks.

Euro-MPs and the European Commission wanted more than double the
increase.

But they were defeated by governments including the UK, which insisted they
would not allow EU rises while imposing national spending cuts.

Euro-MPs had demanded a 5.2% budget rise arguing EU policy spending - most of
which is redistributed in the member states in grants and subsidies - can take
up the slack of national budget cuts in many areas.

Last month, Europe minister David Lidington called the proposed rise in the
long-term budget "astonishing" and Prime Minister David Cameron has also said
hard-pressed Britons would not understand anything above an inflation-only rise
in euro spending in the foreseeable future.

An 11% rise would, according to Treasury estimates, add an extra £1.4bn
(164bn euros) a year between 2012 and 2020 to the UK's contributions to the EU
budget.

The only concession - which the UK voted against - to the Commission and MEPs
was an "amendment" to the 2011 budget to make available up to 200m euros (£170m)
extra.

EU Budget Commissioner Januz Lewandowski said the agreed deal was "clearly an
austerity budget" and warned Brussels may not have enough money to meet all its
financial commitment to recipients of its funds next year.
'Inflation-busting proposals'
No deal on the long-term budget is likely before the end of next year, but
British ministers anxious to put down an early marker of belt-tightening are now
buoyed by the 2012 budget result.

Financial Secretary to the Treasury Mark Hoban, representing the UK at the
negotiations, said the decision was a victory.

"We have stopped the European Commission and European Parliament's
inflation-busting proposals and have delivered on the government's promise to
freeze the EU budget in real terms," he said.

"Throughout this process, we have argued that, with member states facing
tough decisions on spending at home, we could not afford these unrealistic
demands.

"This settlement is far below the 5.2% the European Parliament wanted and the
4.9% proposed by the Commission. It is also 12bn euros (£10.3bn) less than the
maximum ceiling agreed in 2005."

He added: "We will also be fighting hard with like-minded member states
against unaffordable rises in the next seven-year budget."

But UKIP leader Nigel Farage said the government was "dressing a defeat up as
a victory".

"Time and time again this government has promised that it will fight EU
budget increases. Time and time again we are told that a reverse is victory.

"This 2.2% increase equates for Britain an increase in our contributions to
Brussels of £350m (409m euros). Will Mr Cameron tell us which services he is
planning to cut to make up the shortfall - will the NHS be hit, will it be
education, will it be policing?"


Let Mr Cameron take it from the £40 billion stashed in the Treasury dept. !!!!!!!!

that"s what I would advocate., since he has either already lent, or earmarked £5 billion to the IMF Fund to help the EU Nations in trouble.

Come on David.... it makes more sense both ethically and economically to get out of this one way second rate flea market altogether.

It would have been much cheaper in lives and money to have let the Germans take over and dictate our nation's thoughts and policies in 1940. Churchill must be spinning in his grave watching how recent generations of parliamentary traitors and criminals have sold off and destroyed the assets of this nation.

[quote= "malena stool"]Come on David.... it makes more sense both ethically and economically to get out of this one way second rate flea market altogether.

It would have been much cheaper in lives and money to have let the Germans take over and dictate our nation's thoughts and policies in 1940. Churchill must be spinning in his grave watching how recent generations of parliamentary traitors and criminals have sold off and destroyed the assets of this nation.

[/quote]

Malena you are spot on there and i so agree with you. What the hell has happened to us? Merkel to me is Hitler reincarnated and her government is the SS. How dare they tell us that we will be in the eurozone quicker than we think or remain cast offs on the fringe of everything? How dare they call us "Little Englanders" in a derogatory manner? How dare they propose to tax the city. I froth at the mouth to think of it all

They obviously still hate us after all these years, wonder why? What would happen if we started making derogatory comments about them? Imprisoned for racism I suppose!

How dare they chose the governments of other countries making them puppets of Germany? We can all see which way that one is going. Let us all hope it is not third time lucky!!!!!!!

Yes we are little Englanders and I for one am proud to be one, or I used to be!! Why did David Cameron go to Germany to meet the commandant, why not just say this is your problem not ours? If you want to discuss it come to me. I know the euro going down will have an affect on us (well our banks) for a while but we will ride the storm and come out the other end. Cameron is so weak. We are now apparently a safe haven for investors. lets build on that. Call their bluff is what I say, tell them to get on with it.

We were doing fine before we joined Europe we can do so again, we are individual and not actually part of the block.

We have friends in Holland. They hate the EU and all it stands for Because their governments are almost, not quite, as liberal as ours with benefit payouts to immigrants. Apparently if they cannot get here there is their second choice and they have all the same problems.

They have travelled a lot in Britain and they love it. They also tell us that we are very individual people and totally different to the rest of Europe in every way. They tell us this as a compliment and they like to come here because of this. Long may it remain so.

Cameron needs to listen to public opinion and his own backbenchers and get us out of the whole bloody caboodle, being a part of the EU has ruined our country. How can our governments let it go on? We are totally self distructing now.

Yes Churchill is probably turning over in his grave. What we need is a Margaret Thatcher in hey day. She would have stood proud for Britain. No way would she have been bullied by them she would have told them to ---- off, in political speak of course

I agree. Who needs this? Merkel wants further integration of Euro. One country? - is this the 3rd world war?

It was never going to work. Even at a tender age years ago I said it wouldn't as Greece, Italy, Portugal etc are nothing like Germany in character. savings habits and work ethic.

fuzeta wrote:[quote= "malena stool"]Come on David.... it makes more sense both ethically and economically to get out of this one way second rate flea market altogether.

It would have been much cheaper in lives and money to have let the Germans take over and dictate our nation's thoughts and policies in 1940. Churchill must be spinning in his grave watching how recent generations of parliamentary traitors and criminals have sold off and destroyed the assets of this nation.

Malena you are spot on there and i so agree with you. What the hell has happened to us? Merkel to me is Hitler reincarnated and her government is the SS. How dare they tell us that we will be in the eurozone quicker than we think or remain cast offs on the fringe of everything? How dare they call us "Little Englanders" in a derogatory manner? How dare they propose to tax the city. I froth at the mouth to think of it all

They obviously still hate us after all these years, wonder why? What would happen if we started making derogatory comments about them? Imprisoned for racism I suppose!

How dare they chose the governments of other countries making them puppets of Germany? We can all see which way that one is going. Let us all hope it is not third time lucky!!!!!!!

Yes we are little Englanders and I for one am proud to be one, or I used to be!! Why did David Cameron go to Germany to meet the commandant, why not just say this is your problem not ours? If you want to discuss it come to me. I know the euro going down will have an affect on us (well our banks) for a while but we will ride the storm and come out the other end. Cameron is so weak. We are now apparently a safe haven for investors. lets build on that. Call their bluff is what I say, tell them to get on with it.

We were doing fine before we joined Europe we can do so again, we are individual and not actually part of the block.

We have friends in Holland. They hate the EU and all it stands for Because their governments are almost, not quite, as liberal as ours with benefit payouts to immigrants. Apparently if they cannot get here there is their second choice and they have all the same problems.

They have travelled a lot in Britain and they love it. They also tell us that we are very individual people and totally different to the rest of Europe in every way. They tell us this as a compliment and they like to come here because of this. Long may it remain so.

Cameron needs to listen to public opinion and his own backbenchers and get us out of the whole bloody caboodle, being a part of the EU has ruined our country. How can our governments let it go on? We are totally self distructing now.

Yes Churchill is probably turning over in his grave. What we need is a Margaret Thatcher in hey day. She would have stood proud for Britain. No way would she have been bullied by them she would have told them to ---- off, in political speak of course
[/quote]

Well posted fuzeta

From the Articles in the EC thread about Angela Merkel, it is very clear she wants an austerity plan for all those Countries having bailouts
completely ignoring the fact that growth around the World is slowing dramatically , so where is the money coming from to repay these
bailouts?

I would like to know where the money came from that the ECB can ignore the Treaty and "lend" the IMF E270 Billion who will then lend it to the
stricken Economies. How could the EU ask for 5.2% increase when it is sitting on so much money? How much has it got in total? Why doesn"t
it make a refund to all 27 Members since it is their money, not the Eurozones.

David Cameron knows if he had agreed his backbenchers demand for a Referendum he would have lost the coalition with the LibDems and it
would have forced another General Election.