European Commission to increase EU budget by £7.4 billion

Douglas Carswell, the Conservative MP for Clacton, called on David Cameron to
refuse to pay any additional EU budget demands by freezing annual
contributions.

“We should tell them, here’s our frozen contribution, if you don’t like
it, tough. In Britain the Treasury phones government departments and tells
them what money there is. We should extend the same principle to the EU
budget,” he said.

The budget demand will trigger a major political row across the EU, after
Nicolas Sarkozy, the French president, two weeks ago, made a freeze on
Brussels contributions a central plank of his re-election campaign.

British officials are braced for a fierce political battle this spring after
the Commission tables its 2013 EU budget on 25 April. “At a time when
member states are tightening their belts, the EU must show budgetary
restraint,” said a diplomat.

Even senior EU officials are horrified at the proposed increase at a time when
the Commission is imposing austerity measures, such as massive health care
cuts in Greece.

One director grade official in the European civil service revealed that EU
departments have been pressured to increase their budget forecasts in order
to “bump up” Brussels expenditure.

“There are people in the Commission who are like the Taliban, they are
fundamentalists who believe as an article of faith that the EU’s expenditure
must increase every year even during a crisis,” he said.

Mats Persson, the director of the Open Europe think-tank, said: “The
double standards here are extraordinary. The same Commission that is
literally drawing up blueprints for how member states should cut spending
proposes a massive increase to its own budget.”

Commission officials have stressed that extra funding is needed to plug a
black-hole in spending on regional aid projects in the EU’s poorest areas,
as bills fall due at the end of a seven year Brussels financing period, 2007
to 2013.

“There are no final figures yet, however there are inescapable truths,”
said a Commission source.

“The last year of every financial period sees hundreds of EU funded
projects across Europe being completed and the Commission’s role and duty is
to pay those bills sent in by member states just like even in times of
austerity households have to pay their electricity bills.”

Richard Ashworth, leader of Conservative MEPs and a member of the European
parliament’s budget committee, vowed to fight the increase.

“It is as though these people live on another planet where there is no
recession, no eurozone crisis, no bottom to taxpayers’ pockets and no limit
to their own self-indulgence. They seem to have no concept of the abject
disgust which will greet this demand for evermore cash,” he said.

Nigel Farage MEP, the leader of Ukip, said: “This outrageous demand is
Cameron’s chance to wield a veto by refusing to pay any extra. If he doesn’t
voters will be entitled to ask why their public services are being cut while
the only way up is for Brussels spending.”

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