Tuesday

12th Dec 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.

EU blacklists 17 tax havens, avoids sanctions

Finance ministers pointed out 'non-cooperative' entities and set up a second 'grey' list of more than 40 countries that have promised to improve their tax practices.

News in Brief

  1. EU to Israel: Don't expect us to move embassies
  2. EU Commission condemns anti-semitic 'Jerusalem' protests
  3. Ministers have 'lots of questions' on new CAP plans
  4. Commission: Brexit agreement is 'deal between gentlemen'
  5. 25 EU states sign defence cooperation pact
  6. Netanyahu wants 'hardy' talks with EU on Jerusalem
  7. French centre-right elects new leader
  8. Germany and UK increase arms sales

Stakeholders' Highlights

  1. ACCACFOs Risk Losing Relevance If They Do Not Embrace Technology
  2. UNICEFMake the Digital World Safer for Children & Increase Access for the Most Disadvantaged
  3. European Jewish CongressWelcomes Recognition of Jerusalem as the Capital of Israel and Calls on EU States to Follow Suit
  4. Mission of China to the EUChina and EU Boost Innovation Cooperation Under Horizon 2020
  5. European Gaming & Betting AssociationJuncker’s "Political" Commission Leaves Gambling Reforms to the Court
  6. AJC Transatlantic InstituteAJC Applauds U.S. Recognition of Jerusalem as Israel’s Capital City
  7. EU2017EEEU Telecom Ministers Reached an Agreement on the 5G Roadmap
  8. European Friends of ArmeniaEU-Armenia Relations in the CEPA Era: What's Next?
  9. Mission of China to the EU16+1 Cooperation Injects New Vigour Into China-EU Ties
  10. EPSUEU Blacklist of Tax Havens Is a Sham
  11. EU2017EERole of Culture in Building Cohesive Societies in Europe
  12. ILGA EuropeCongratulations to Austria - Court Overturns Barriers to Equal Marriage

Latest News

  1. Alignment with EU is 'last resort', May tells MPs
  2. Iceland: further from EU membership than ever
  3. Israel presses Jerusalem claim in EU capital
  4. From dark coal toward a brighter future
  5. UK casts doubt on EU deal in 'bizarre' twist
  6. Romania wants EU signal on Schengen membership
  7. Germany says China using LinkedIn to recruit informants
  8. No chance of expanding EU warrant crime list