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European Council, 16–17 June

My Lords, as the European budget commissioner at the time that the rebate was negotiated, I can first confirm the point made by the noble Lord, Lord Williamson. Secondly, the Prime Minister has gone precisely to the heart of the matter of linking this anomaly to the anomaly of the distribution of the budget, which is the lever that we have to bring about change. I hope that the Prime Minister will not build up too much hope for change during the period of the British presidency, since the new budget does not have to be agreed for quite some time, and in the nature of things those agreements are likely to come right at the end. I further ask the noble Baroness to assure me that, while defending the British interest and ensuring change in the European Union, the Prime Minister will take full account of the fact that 10 new members have joined. They were not party to the original negotiation and, as the noble Baroness indicated in her repetition of the Statement, they need to be treated on a different basis from the others. As one who was present at the original negotiation and played a part in it, I wish the Prime Minister luck in his endeavours.