Friday, 9 January 2009

Weak pound adds £3.6bn to UK's EU budget contribution

The falling value of Sterling has added £3.6 billion to the amount the UK Government must pay in to the EU budget over the next three years. This is on top of a trebling of the UK contribution to the EU budget revealed in a Pre-Budget report in November – from £2 billion this year to £6.5 billion in 2011 – figures that were calculated at a time when £1 was worth 1.4 euros.

Lib-Dem Treasury spokesman Vince Cable criticised the Government for giving away part of the UK’s rebate three years ago. He said, “Tony Blair should have insisted on much more far-reaching commitments on agricultural reform, and that failure is costing us in higher contributions now.” (Independent on Sunday Sunday Express, 4 January 2009)

This article first appeared on Open Europe.