18 December 2005

EU budget deal. Good or Bad?

If you read some of the wilder posts on this and the Tory press, you can only come to one conclusion about the 7 billion pounds wiped off our projected future rebate.

The first thing to point out is that some of this 7 billion pounds will be spent here. The actual rebate itself will actually increase because of the extra payments from the enlarged union, which is why without reform we would have moved from 2nd highest net contributors to 2nd lowest.

As it happens this current deal will mean we make the same net contributions as France and Italy for the FIRST TIME EVER. So we are actually going to be BETTER OFF.

France's contributions have risen by 116%, Italy 130% and ours just 63%. Looked at in that light it is not such a bad deal.

12 comments:

  1. I'm sorry that's not true. The CAP favours, by design, France and Germany. The UK's contributions should be reduced (as they were until Blair's ill-judged concession) to account for that.

    Until, and only until, that is corrected there's no good news and no-one can really believe Blair's done the UK any favours.

    And don't get me started on whether the EU's actually a good thing in the first place!

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  2. So having, even more, money taken from you makes you better off. I think there are some nice Nigerians that you really should be introduced to, they can make you much better off.

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  3. We pay more in, but we are getting more out. The actual amount of the rebate cheque is increasing, it just will be 7 billion pounds less over the 2007-13 period than it would have been.

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  4. it just will be 7 billion pounds less over the 2007-13 period than it would have been.

    So, to take New Labour's standard attack line, which public services are you going to cut to pay for that? Because as we all know, you can't reduce future planned spending without sacking nurses...

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  5. Andrew, It was exactly right to point out that the Tories would cut public spending by 35bn pounds if they got in.

    Of course this rebate cut means less money available in the UK. But by spending it to redevelop Eastern Europe, we are investing in our mutual economic growth. Giving tax cuts to the rich, liek the Tories would is not the same thing.

    The Tories would rather spend money on putting everyone on the dole, than spend it on health and education. It is against their principles to spend on public services.

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  6. Of course this rebate cut means less money available in the UK.

    Right, so which public services are you going to cut?

    But by spending it to redevelop Eastern Europe, we are investing in our mutual economic growth. Giving tax cuts to the rich, liek the Tories would is not the same thing.


    Because rich people don't spend their money, do they? They just stash it under the mattress, occasionally burning a slab of tenners to keep the mansion heated. And nice misrepresentation of Tory policy - our tax policy doesn't involve giving tax cuts 'to the rich'. In fact, I'm not even sure if we have a tax policy at the moment.

    The Tories would rather spend money on putting everyone on the dole

    Huh? Are you totally mad?

    It is against their principles to spend on public services.

    Not any more, Neil. Not any more. Dave Cameron is putting a nice electable veneer on the party, so that when we get in we can cut taxes for the rich, spend government money on putting people on the dole, and then cut welfare just to spite them. Muaah-hah-haaah-hah-haaaaaah!

    Anyway, which public services are you going to cut to fund this handout to the EU?

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  7. As Labour are the best at managing the economy, the extra growth from being in a successful expanded EU (fast growth in the East thanks to our investment), will more than compensate. There won't have to be any public service cuts. If Cameron gets in, the tax cuts for the wealthy that he proposes will be used to buy yachts and second homes abroad.

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  8. Oh, right. You're going to magic the 7 billion pounds back...

    You have 7 billion pounds of cuts to make. Where are they going to come from?

    Once again, Cameron isn't proposing any tax cuts yet, least of all for the wealthy.

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  9. Andrew, some of this 7 billion pounds 'lost' over the 6 year period will end up being spent in the UK anyway, and of the rest, most will be spent on expanding economies that will benefit our export trade. It was essential for a deal to be made and even the Tories accepted that keeping the present formula which would have drastically INCREASED the amounts we received would have been unfair. As it is, the ACTUAL AMOUNT of the rebate will remain the same.

    The Cameron 'sharing proceeds of growth' claim (even if we trust him, which I don't), will mean 35 billion pounds of cuts. I suspect most Tories will push for more than this.

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  10. The Cameron 'sharing proceeds of growth' claim (even if we trust him, which I don't), will mean 35 billion pounds of cuts. I suspect most Tories will push for more than this.

    We aren't in government. You are. So which public services are you going to cut to pay for that 7bn?

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  11. "So which public services are you going to cut to pay for that 7bn?"

    Like I've explained some of the 7bn will be spent here anyway as EU grants, the rest will go to develop Eastern Europe which will also benefit our economy. We are more than likely to get this from taxing oil monopolies.

    The 35bn (minimum), Cameron plans on giving to his rich friends will come from frontline services.

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  12. Like I've explained some of the 7bn will be spent here anyway as EU grants, the rest will go to develop Eastern Europe which will also benefit our economy. We are more than likely to get this from taxing oil monopolies.

    Funny how spending money in Eastern Europe is okay, but rich people spending their money in the UK is not...

    So, once again, what are you going to cut to pay for that 7bn? You're going to have to cut something. That money won't just magically re-appear.

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