Saturday

23rd Jul 2016

Cameron defeated in EU budget vote

  • Cameron's hands tied ahead of budget summit (Photo: parliament.uk)

British Prime Minister David Cameron suffered an important defeat in parliament on Wednesday (31 October) when opposition Labour party MPs sided with eurosceptics in his own Conservative party to demand a reduction in the EU budget

MPs voted by 307 to 294 in favour of a Tory-rebel amendment calling for the 2014-2020 EU budget to be "reduced in real terms."

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

Ahead of the vote, Cameron portrayed himself as tough on Brussels but left wiggle-room to agree to an EU budget increase in line with 2 percent inflation.

"This government is taking the toughest line in these budget negotiations of any government since we joined the European Union," he said.

"At best we would like it cut, at worst frozen, and I'm quite prepared to use the veto if we don't get a deal that's good for Britain," he added.

The vote is not legally binding.

But it will make it politically more difficult for Cameron to make concessions when EU member states discuss the budget at a summit on 22 November.

For its part, the Guardian reported that some senior Conservatives did not back the amendment in order to spite Labour.

But the same grandees have threatened Cameron with a rebellion if he does not get EU spending down.

Meanwhile across the Channel, France added its name to the growing list of potential budget veto-wielders.

It said it is against a proposed cut to farm subsidies to bring down the overall cost of the €1 trillion package.

"France would not support a multi-annual budget that does not maintain the funds of the common agricultural policy," its EU affairs minister Bernard Cazeneuve said.

The statement comes after the Cypriot EU presidency proposed a modest cut of €5 billion to the farm pot.

Sweden, the Netherlands and Denmark are also - for differing reasons - waving the veto flag.

But poorer states in the east and south of Europe want spending to go up in line with European Commission and EU parliament ideas.

The challenge facing EU negotiators is not just whether the budget should be bigger or smaller but where the money should be spent.

The 27 member states are split into various groups - sometimes overlapping - which emphasize different priorities.

If the November summit ends without a deal, the deadline moves to next spring - the final moment to get the necessary EU legislation in place by 2014.

EU to tweak rules on Chinese 'dumping'

The EU Commission has tried to fudge the issue of whether China is a “market economy” amid efforts to protect European industry from cheap exports.

Court ruling puts Renzi bank plan in doubt

EU court ruling on bank bailouts has raised the likelihood of a political embarrassment for Renzi, months before a referendum puts his future and, potentially, Italy’s euro future on the line.

Stakeholders' Highlights

  1. Belgrade Security ForumMigration, Security and Solidarity within Global Disorder: Academic Event Agenda for 2016
  2. GoogleHow Google Fights Piracy: Creating Value While Fighting Piracy
  3. EJC"My Visit to Israel" - Opinion by MEP Lopez Aguilar, Chair of the EP Working Group on Antisemitism
  4. World VisionChildren Migrating, Out of School and at Work as Hunger Deepens in Southern Africa
  5. European Healthy Lifestyle AllianceStand-Up (and Exercise) to Prevent Chronic Diseases
  6. Centre Maurits CoppietersLaunches a Real-time News Hub Specialised in EU Stakeholders
  7. Dialogue PlatformFethullah Gulen Calls for International Probe Into Turkey Coup Allegations
  8. GoogleEU-US Privacy Shield: Restoring Faith in Data Flows and Transatlantic Relations
  9. World VisionWorld Leaders & Youth Advocates Launch Partnership to End Violence Vs. Children
  10. Counter BalanceReport: Institutionalised Corruption in Romania's Third Largest Company
  11. Access NowEuropol Supports Encryption. We Can Relax Now… Right?
  12. GoogleLearn about Google's projects across Europe on Twitter @GoogleBrussels

Latest News

  1. Munich attack might not have been terrorism
  2. A very British (and Corbynite) coup
  3. Poland 'changing for the worse' for Muslims and refugees
  4. EU aims to lift visas on Turks despite purge
  5. ECB in ‘bail-out’ of scandal-tainted VW
  6. EU failed to learn lesson from Brexit, Poland says
  7. UK accord on EU workers 'crucial', France says
  8. EU and US take different lines on Turkey crackdown