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European Council

There is a simple way of testing the proposition that my hon. Friend has rightly raised. Between 1984 and 2004, we paid roughly double the net contributions that France paid, but for the next financial period and for the first time in the history of the European Union, we will be in parity. That is why, frankly, it is so absurd to say that we have somehow got nothing from the deal. We have actually achieved parity for the first time. Naturally, both France and Britain will have to pay more if we want to see developments in eastern Europe. Underneath all the debates and arguments lies an important question—not just about budget reform, but in relation to enlargement—about the direction of Europe. Do we want further enlargement of the EU? Macedonia is a small country so enlargement can happen fairly easily there, but Croatia and Turkey are also coming up for membership. There is no way that we will be able to create the right context of consent across Europe for those major enlargements—I happen to believe that they are in the long-term interest of this country—unless we have a more rational budget. Such a budget will have to be decided in the future.