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Threat to EU rebate puts Blair and Brown at loggerheads again
Daily Telegraph ^ | 05/03/2005 | David Rennie in Brussels and Toby HelmDavid Rennie in Brussels and Toby HelmD Rennnie, T Helms

Posted on 03/05/2005 12:00:43 AM PST by ScaniaBoy

A new rift has opened between Tony Blair and Gordon Brown over how best to defend Britain's multi-billion pound annual "rebate" from the European Union, secured in 1984 by Margaret Thatcher.

The battle for the rebate is one of the most sensitive items on the Whitehall agenda as Mr Blair prepares for next year's referendum on the European constitution.

All other leading EU nations and the European Commission believe that the rebate gives Britain an over-generous deal and want it scrapped.

The rebate last year reduced Britain's net contribution into the EU by £2.5 billion. Without it, Britain would have paid in 14 times as much as France or Italy since 1984.

But with negotiations on the new EU budget under way, Government strategy on how to preserve it is divided, sources said yesterday, with Downing Street and the Treasury at odds.

The dispute is putting added strain on relations between the camps of Mr Blair and Mr Brown as the two men attempt to present a united front in the run up the general election.

The Daily Telegraph has been told that Mr Blair and his inner circle want to secure the best available deal as soon as possible, and get the EU row over the rebate out of the way, ideally during a June summit of European leaders. Their fear is that if the dispute drags on it could become a central issue in the run up to the referendum on the EU constitution, expected any time between March and autumn 2006.

Officials at No 10 believe that they have a strong case for preserving the Thatcher rebate, as they negotiate the next "financial perspectives" for the EU, which will set Union budgets from 2007 until 2013. But sources say the Blair camp could be prepared to contemplate some form of compromise.

In contrast, Mr Brown, is determined to fight tooth and nail for the rebate, if necessary all the way past the referendum into late next year. Last night a Treasury spokesman said compromise was not on the cards.

EU funding is by unanimous vote, giving Britain a theoretical veto over any demand to give up the rebate.

Last night Downing Street officials stuck by the official line that the rebate "was not up for negotiation".

But there is some willingness to consider moving if changes can be made to other aspects of EU funding.


TOPICS: Foreign Affairs; News/Current Events; United Kingdom
KEYWORDS: economy; eu; eurozone; tributes; uk
A very sensitive issue. If Labour isn't seen to do it's utmost to protect British interests they may well lose the election, and the referendum campaign would be walk over.
1 posted on 03/05/2005 12:00:44 AM PST by ScaniaBoy
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To: jb6; GeronL; MadIvan

ping!


2 posted on 03/05/2005 12:01:49 AM PST by ScaniaBoy (Part of the Right Wing Research & Attack Machine)
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To: ScaniaBoy
Without it, Britain would have paid in 14 times as much as France or Italy since 1984.

Why is this true?

3 posted on 03/05/2005 12:23:10 AM PST by stinkerpot65
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To: stinkerpot65
Without it, Britain would have paid in 14 times as much as France or Italy since 1984.

Why is this true?

I can't guarantee that the figures are correct, but the Daily Telegraph is usually careful about such statements.

The reason Britain would have paid much more than Italy and France, if Mrs Thatcher hadn't "handbagged" the other national leaders during th mid-80s is the CAP - the Common Agricultural Policy.

The inefficient French and Italian agricultural sectors are subsidized by the rest of Europe.

4 posted on 03/05/2005 1:16:01 AM PST by ScaniaBoy (Part of the Right Wing Research & Attack Machine)
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To: ScaniaBoy

We need to pull out of this mess now.
In order to impose the dictatorship that is the European Union upon the British people, weak British governments, seemingly bored with the restraints of democracy, have treated the freedoms of the people with contempt. This contempt is largely manifested in the wholesale disregard for the constitution of these islands; a constitution which belongs to the British people and not to the House of Commons or the parliamentary parties. Blair is yet another in a long line of traitors.


5 posted on 03/05/2005 1:17:51 AM PST by Anglo
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To: Anglo
Agree wholeheartedly.

In Sweden our problem is that all the major parties belong to the group of traitors. The only parties who claim that they would take Sweden out of EU is the Greens and the former Communists.

It would be very hard to vote for any of those parties, and even if they would win (which they won't) what guarantee do yo have that they won't change their position once they are in power?

No, our only chance in Sweden is to force a referendum - It is going to be hard, but maybe not impossible.
6 posted on 03/05/2005 1:24:34 AM PST by ScaniaBoy (Part of the Right Wing Research & Attack Machine)
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To: ScaniaBoy

I sure hope that people like you will begin to broaden the perspective and crack open the European group think that this EU push seems to have created. You need alternatives to government-owned media.


7 posted on 03/05/2005 3:39:25 AM PST by ClaireSolt (.)
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To: stinkerpot65
From each according to his means, to each according to his NEEDS

Dat's why! More Socialists sucking the life outta anyone who's making it.

8 posted on 03/05/2005 4:44:53 AM PST by BB2
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