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European Council: 15–16 December 2005

My Lords, the results of EU negotiations, as they cross the Channel, usually arrive in a light mist—or, in the case of the Official Opposition, a red mist. I would like the Leader of the House to clarify three points which I think are important for the public, although they may be self-evident to experts. First, the issue here has been the financial perspectives which form the budget framework for 2007 to 2013. I want to confirm that the whole system of capping and overall control of the budget will remain fully in effect right through this period. That is a very important point for the public, whatever changes we have made this time. Secondly, will the rebate—which as the noble Baroness said is an ““anomaly on an anomaly””, but one which I love very dearly myself—remain an integral part of the system and continue to apply unchanged to our net payments with the sole exception of the structural and cohesion expenditure in favour of the new member states? If the answer to those two questions is ““Yes””, then the budget expenditure remains capped and the UK’s rebate can continue to rise as needed. Those are important points for the public. Finally, will the noble Baroness confirm that it is reasonable to foresee that, after the application of the rebate even as amended, the UK is likely to remain in the middle group of net contributors per head? For example, in 2004, the Netherlands, Sweden and Germany were ahead of us, and another four countries were very close to us. In the new system, we should be in a fairly tight bunch of net contributors. We cannot forecast exactly, but is that a reasonable forecast?