European Council

Malcolm Rifkind Excerpts

Monday 1st November 2010 Commons Chamber

[The Prime Minister]

What I can say to the right hon. Gentleman is that, for the first time, the European Council’s conclusions set out the new principle that increases or changes to the EU budget should reflect what we are doing in our nation states. That has never been put in place before, which is why the Commission opposed it so much. The principle is that what is happening across Europe must be reflected in the EU budget; that is the key. I will be pressing for the best possible outcome in 2012 and 2013, and as Britain is a net contributor the best possible outcome for us is that we do not make these increases in our net contribution.

[Sir Malcolm Rifkind (Kensington) (Con)]

Does the Prime Minister agree that the experience of the Labour Government in respect of the European budget was a failure to reconcile net income with gross habits, and will he also confirm that his success in putting together this blocking coalition will save the British taxpayer half a billion pounds?

[The Prime Minister]

My right hon. and learned Friend is absolutely right. Every percentage increase we save is equivalent to well over £100 million. The failure there has been—for a long time, frankly—over this issue is twofold: a failure to take the budget issue seriously enough and, secondly, a failure to have transparency and therefore to have the information about the EU budget out there so that citizens in Europe can really complain about the inflated salaries and allowances. Let me give just one example: civil servants who have been in Brussels for 30 years are still paid generous expatriate allowances. That is the sort of excess that we have got to deal with.