European Council

Jack Straw Excerpts

Monday 11th February 2013 Commons Chamber

[The Prime Minister]

I agree with my right hon. and learned Friend, and it is worth paying tribute to Baroness Thatcher, because what makes the British rebate different from the other rebates is that it does not have to be renewed in each seven-year term: it is there as part of the architecture of the budget, and unless you are foolish enough to give some of it away, which the last Government did, it is there and can only be amended by unanimity.

I agree with what my right hon. and learned Friend says about working with allies, but I would also say this, which is relevant to what Margaret Thatcher achieved at Fontainebleau: everyone in the European Union has got to understand that you are prepared to say no if you do not get what you want.

[Mr Jack Straw (Blackburn) (Lab)]

In welcoming the progress that was made, may I ask the Prime Minister about further efforts to cut the administrative costs of the European Union? He will be aware that, even in Germany, the high cost of salaries and the benefits that officials enjoy is now a matter of great public controversy. What progress does he think could be made on this budget to ensure that those who work for the European Commission are paid a reasonable salary and not one that offends European taxpayers?

[The Prime Minister]

The right hon. Gentleman is right to raise this. The Commission proposal—heading 5, on EU bureaucracy—was €63 billion over the seven-year-period. That was cut back to €61.6 billion, but it is disappointing. Looking at levels of pay, levels of benefit and some of the special payments that people receive, there is a range of reforms that could be made. We must go on arguing for them in the annual budget process and go on working with allies. I think it is now understood across Europe that there are generosities that simply are not defendable.