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EU Economics

UK got out just in time! EU plots to SCRAP budget rebates to Brussels’ contributors

THE European Union’s (EU) head of budget has called for the bloc to scrap all member state rebates in a move which would see countries paying higher fees into the bloc receive nothing in return.

Gunther Oettinger GETTY                 Oettinger is in charge of the EU’s budget for the next seven years


Gunther Oettinger, the European Commissioner for Budget and Human Resources, has recommended outlawing any discount on membership fees for member states just months after Britain voted to unshackle itself from the beleaguered bloc.

The plans are set to refuel speculation EU chiefs were preparing to raid Britain for more cash if it voted to remain in the Brussels club.

The German head of the EU budget told a panel at his nation’s foreign ministry: “I want to propose a budget framework that does not only do without the mother of all rebates the UK’s but without all of its children as well.”

Gunther Oettinger GETTY                 Gunther Oettinger said the EU should scrap budget rebates


Brexit flag GETTY              Britain voted to leave the EU on June 23


I want to propose a budget framework that does not only do without the mother of all rebates the UK’s but without all of its children as well

Gunther Oettinger, European Commissioner for Budget and Human Resources

Speaking on Thursday, Mr Oettinger, who has been in charge of the EU’s budget for the next seven years, added: “With the UK leaving, the end of the EU-UK rebate offers us the chance to cancel all other rebates as well.”

Britain’s rebate is currently worth around £5 billion a year, and without it the UK would be the biggest net contributor to the Brussels project ahead even of its biggest economy Germany.

UK taxpayers pay around £13billion a year into Brussels coffers but without the rebate that figure would have risen to an eye-watering £18billion – the equivalent of £666 per household, according to a report released in January by the European Council.

It is not clear exactly when the proposal to scrap all rebates was formulated. But Britain’s right to the annual cash payment is crucially not written into the EU’s treaties and is therefore not officially guaranteed under Brussels law.

Pounds GETTY             The EU is currently demanding Britain stumps up a Brexit bill


Instead, it is negotiated as part of the EU’s seven-year long budget agreements, known as Multiannual Financial Frameworks, which require unanimous backing.

At the same panel discussion Mr Oettinger also warned that without a trade deal with the EU Britain would be left on the same level as Uganda when it leave the bloc.

He added: “If a deal doesn’t happen by March 2019 then we’ll consider our relationship with the United Kingdom the same as our relationship with Uganda.”

http://www.express.co.uk/news/world/812089/European-Union-plan-scrap-budget-rebate-Brexit

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1 Comment on "UK got out just in time! EU plots to SCRAP budget rebates to Brussels’ contributors"

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Jane Davies
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Really you can’t make this stuff up. How to alienate your members by shafting them wholesale then wonder why more ordinary folk start demanding a referendum to leave. Shooting yourself in the foot time and again and then being surprised it hurts! So did all the other member countries vote for this?

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