11. A high price to pay? Britain and the European budget
- Author:
- James Spence
- Publication Date:
- 11-2012
- Content Type:
- Journal Article
- Institution:
- Chatham House
- Abstract:
- Shadows of 'bougets', in the old sense of moneybags, loom over Britain's stance on the EU budget today, as they did over EC budgets 40 years ago. Three of the make-or-break issues for the UK in the negotiations over the multiannual financial framework (MFF) for the period from 2014 to 2020 concern the direct cost of UK membership. The first is maintaining the British correction or 'rebate', while also maintaining member state sovereignty over budget revenue decisions. (The current rebate, some claim, was finally gained by another 'bouget', Mrs Thatcher's fabled handbag, in 1984.) Cutting finance to the Common Agricultural Policy (CAP) is the second, and closely linked to the first. At the time Britain was negotiating its terms for accession, its less Eurocentric agricultural trade patterns, and its higher dependence on cheap food imports from outside the Communities, marked it off from the six founding EC member states for which food security was a high priority. UK food prices were relatively low compared to Continental prices. Agriculture was a smaller economic and employment sector in the UK than it was in Continental Europe, and land ownership patterns also differed markedly. The third, and again related, issue is reducing the overall size of the MFF: that is, limiting the amounts available for the EU's annual budgets over several years, and therefore reducing the UK's contributions.
- Topic:
- War
- Political Geography:
- United Kingdom and Europe