Friday

20th Oct 2017

UK threatens to veto EU budget

British conservative Prime Minister David Cameron has said he will block the upcoming EU seven-year budget cycle if it goes against UK interests.

“They know I'm capable of saying No and if I don't get a good deal I'll say No again,” he told the BBC on Sunday (7 October).

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

  • British conservative Prime Minister David Cameron has threatened to veto the EU budget (Photo: El_Enigma)

Cameron last year vetoed the fiscal compact treaty on budget discipline which commits member states to sign up to a debt brake.

“I sat round that table - 27 countries, 26 of them signing up to a treaty and I said, 'This is not in Britain's interests, I don't care how much pressure you put on, I'm not signing, we're not having it,” he said on Sunday.

Details of the treaty were fleshed out and then signed by all member states in March, except the UK and the Czech Republic.

Negotiations are currently underway on the EU’s multi-financial framework budget for the period 2014 to 2020. Some 80 percent of the budget goes to member states and covers everything from farm subsidies to research.

The European Commission proposed to increase the budget to a total of €1,033 billion. The European Parliament backs the commission’s budget line, but member states say it is too much, with the UK among those calling for a €100 billion cut.

All 27 member states need to approve the budget, but Cameron says they must first agree to a “proper control” of spending. He threatened to veto any “massive increase."

Two EU budgets

The prime minister also spoke of introducing a separate budget for the 17 member states using the euro.

“There will come a time I believe where you're going to need to have two European budgets - one for the single currency, because they're going to have to support each other much more, and perhaps a wider budget for everybody else,” he told the BBC.

European Council chief Herman Van Rompuy initially circulated the proposal in September and said it would entail, among other things, “a central budget whose role and functions would need to be defined."

The idea is gaining momentum among the Germans and the French.

French finance minister Pierre Moscovici has already suggested that such a budget could be used to address unemployment problems.

The Financial Times Deutschland on Monday reported that a eurozone budget would require around €20 billion.

The paper, without citing sources, said “a euro zone budget of around €20 billion would mean extra costs of around 0.2 percent of eurozone GDP.”

The paper noted that Germany would be liable “for just under €6 billion a year."

Hague makes case for minimalist EU

British foreign minister Hague has made the case for a politically minimalist European Union as it prepares to audit its relations with Brussels.

Germany makes case for British EU membership

Germany has told the UK it is an important and needed member of the European Union, just days after London spelled out its deep ambivalence about its EU future.

New EU budget proposal cuts across red lines

The Cypriot presidency has proposed cutting €50 billion off EU spending plans for 2014 to 2020 - a number that could trigger national vetoes and strikes by EU staff.

News in Brief

  1. Dutch PM: Brexit is 'still a bad idea'
  2. Commission to issue proposal on civil protection
  3. Tusk: 'No space' for EU intervention in Catalonia
  4. Austrian PM calls Brexit talks speed 'big disappointment'
  5. PM Muscat: journalist murder 'left a mark' on Malta
  6. Belgian PM: No crisis with Spain over Catalan remarks
  7. Ireland PM: Further Brexit concessions needed from UK
  8. Merkel: rule of law in Turkey going 'in wrong direction'

Stakeholders' Highlights

  1. European Jewish CongressEJC Applauds the Bulgarian Government for Adopting the Working Definition of Antisemitism
  2. EU2017EENorth Korea Leaves Europe No Choice, Says Estonian Foreign Minister Sven Mikser
  3. Mission of China to the EUZhang Ming Appointed New Ambassador of the Mission of China to the EU
  4. International Partnership for Human RightsEU Should Seek Concrete Commitments From Azerbaijan at Human Rights Dialogue
  5. European Jewish CongressEJC Calls for New Austrian Government to Exclude Extremist Freedom Party
  6. CES - Silicones EuropeIn Healthcare, Silicones Are the Frontrunner. And That's a Good Thing!
  7. EU2017EEEuropean Space Week 2017 in Tallinn from November 3-9. Register Now!
  8. European Entrepreneurs CEA-PMEMobiliseSME Exchange Programme Open Doors for 400 Companies Across Europe
  9. CECEE-Privacy Regulation – Hands off M2M Communication!
  10. ILGA-EuropeHealth4LGBTI: Reducing Health Inequalities Experienced by LGBTI People
  11. EU2017EEEHealth: A Tool for More Equal Health
  12. Mission of China to the EUChina-EU Tourism a Key Driver for Job Creation and Enhanced Competitiveness