UK: EU budget rise plan ‘breathtaking’

The British government has attacked the European Commission over what London described as “breathtaking” budget rise demands by Brussels.

British Financial Secretary to the Treasury Greg Clark said during rancorous talks on the EU spending levels for next year on Friday that his government cannot afford a proposed 6.8 percent rise for the 2013 while London is cutting its budget by 20 percent at home.

The European Commission has proposed the increase on this year’s £103 billion budget in addition to an 11 percent increase to the EU’s 2014-2020 financial program.

“[With the 20 percent cuts in Britain’s spending] most people around this table should recognize the need to reduce rather than increase budgets,” Clark said.

“So it is frankly breathtaking that, knowing all that, the Commission does not practice what it preaches by proposing reductions, but instead asks for a 6.8% increase in this budget over last year,” he added.

Clark also blasted the EU for demanding an “extra 9 €billion (£7.2 billion) for 2012 – the equivalent of a 9.5% increase on the 2011 budget,” saying Europe must practice the “fiscal discipline” it requires of its members states.

This comes as British Prime Minister David Cameron had earlier threatened to veto the EU’s seven-year budget in a summit expected in a fortnight if Brussels does not consider a budget freeze.

Britain, France, Germany, Sweden and the Netherlands only agreed to a 2.79percent rise for the 2013 budget on Friday.