Cameron refuses to pay UK bill to EU budget

Note: This section contains information in English only.
Source: Dukascopy Bank SA
"If you open this act for future negotiations you open up a Pandora's box"
 - Jacek Dominik, European Commissioner for Budgets

British Prime Minister David Cameron, being under political pressure from eurosceptics, refused to pay 2.1 billion-euro bill into the EU budget by the December 1 deadline. EU Budget Commissioner Jacek Dominik replied to Cameron's angry reaction, by saying that it would be risky for the UK to try to change the current agreement over member countries' contribution to the EU budget and it would require an approval from a qualified majority of EU member states. He also added that there was no possibility of providing Britain more time to pay bill. If the country does not pay until the deadline, the Commission will send a letter asking for an explanation, and ultimately will be forced to impose "payment fines on the amounts that are due and not paid to the EU budget," Dominik said. The UK rebate totals 5.9 billion euros for 2014. The country is in line to for a rise of more than 500 million euros in its rebate next year. The standstill between London and Brussels over the budget threatens to deepen increasing eurosceptic sentiment in Britain. David Cameron has pledged a UK referendum on EU membership by 2017 in case he wins an election next year.

EU finance ministers had been expected to hold an emergency meeting on the budget issue next month. However, Cameron's spokesman said the subject would now be discussed at a EU finance ministers' meeting on 7 November.



© Dukascopy Bank SA

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