UK's EU Surcharge Row: Your Questions Answered

Written By Unknown on Jumat, 24 Oktober 2014 | 18.25

What is the European Commission asking for from the UK?

Britain has been told it has to pay an extra £1.7bn (€2.1bn) towards the European Union budget.

This is being called a one-off bill which would add about a fifth to the UK's annual net contribution of £8.6bn.

Why the increase?

The extra money is being demanded because the UK economy is doing better relative to other countries in Europe.

The surcharge also comes from changes in how the EU calculates countries' gross national income (GNI), including more hidden activities like illegal drugs and prostitution.

The European Commission's statistics agency Eurostat looked at how member economies have performed since 1995.

And they re-adjusted the contributions according to the pace of their growth in recent years.

A statement on the EC website read: "On 17 October the Commission adopted its draft amending budget 6 for 2014.

"Though the overall GNI-based own resource does not increase, DAB6 proposes to amend Member State's GNI contribution to the EU budget based on the latest data on the evolution of Member States' wealth."

Do any other countries have to pay more?

The Netherlands has been asked to stump up an extra €642m into the EU budget.

Do any countries have to pay less?

France is set to get a rebate of €1bn and Germany is due to receive a €779m rebate as they have been overpaying.

Why is the UK government angered by the extra demand?

A Downing Street source said: "It's not acceptable to just change the fees for previous years and demand them back at a moment's notice."

Video: Farage: EU Surcharge 'Outrageous'

"The European Commission was not expecting this money and does not need this money and we will work with other countries similarly affected to do all we can to challenge this."

Britain is now facing calls to refuse to pay the extra money and David Cameron is sure to challenge the additional demand at a meeting now in Brussels.

The surprise demand was also branded "outrageous" by Eurosceptic MPs in Mr Cameron's Conservative Party.

And it will pile more pressure on the Prime Minister as he fights to defend the seat of Rochester and Strood from UKIP in a by-election on November 20.

What does UKIP think?

Leader Nigel Farage said: "David Cameron once claimed that he had reduced the EU budget - but the UK contribution went up - and now, quite incredibly, our contribution goes up a second time. It's just outrageous.

"The EU is like a thirsty vampire feasting on UK taxpayers' blood. We need to protect the innocent victims, who are us."

Maybe the UK should pay the extra money?

Lecturer Isabelle Hertner said she was in favour of the surcharge. She told Sky News: "It is fair because for many years Britain had a rebate that was negotiated by ex-PM Margaret Thatcher and paid less into the EU budget than it should have paid.

"Whereas Germany and France paid as much as it should have paid, so in a way this is a give-and-take relationship. Sometimes you pay in more, sometimes less.

"For me this is fair and it was a rule that was agreed by the British government and other EU governments in the past."

What does the European Commission say?

Patrizio Fiorilli, an EC spokesman, said the request for more funds "reflects an increase in wealth".

He said: "Just as in Britain you pay more to the Inland Revenue if your earnings go up."

The EC also said the EU budget was about €144bn in 2013 - which it claimed was very small compared to the sum of the 28 EU countries' national budgets (over €6,400bn).

It added that total government expenditure by the 28 EU countries is almost 50 times the EU budget.

When does the UK have to pay the extra money?

Britain will have to make the top up payment by 1 December.


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