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Future EU Finances and Own Resources

I think that I have made my position clear to the right hon. Gentleman. As a result of these changes, the total UK rebate will still be larger over the next financial perspective than the current one—an estimated €41 billion in 2004 prices between 2007 and 2013 compared with€36 billion in the current financial perspective. Finally, there will be the review of the budget. The review was agreed as part of the December package and confirmed in the inter-institutional agreement. The review will be led by the Commission and will report in 2008-09. It will allow the Council then to assess the value of all areas of EU expenditure, including the common agricultural policy. This is a process through which we can move to further reform of the CAP and further reform of the European budget as a whole to put it on a more rational and logical basis, so that it can concentrate on the things that are essential to Europe’s future. Throughout this process of negotiation, the UK’s objectives have been consistent. We wanted tight budgetary discipline; we wanted more spending on policy reform, especially more reform to the CAP and the structural funds; we wanted successful enlargement; and we also wanted to protect the UK’s financial position. We secured budget growth limited to 13 per cent., when the Commission had proposed 25 per cent. We secured an EU budget that will be less than 1 per cent. of gross national income by 2013—its lowest level for 20 years. We secured a massive uplift in social and cohesion fund allocations for the new member states, and secured more flexibility to ensure that those countries can effectively absorb the structural funds and improve their growth and productivity. We secured a doubling in research and development spending, and secured and retained the UK abatement, which will increase in value during the next financial perspective. We secured the political commitment of all member states and the Commission to a fundamental review of all aspects of expenditure and revenue. This is good deal for Europe, and it is a good deal for the UK. I commend it to the House. Question put:— Resolved,"That this House takes note of European Union Documents No. 5973/06, the Commission’s revised Proposal for renewal of the Inter-institutional Agreement on budgetary discipline and improvement of the budgetary procedure, No. 6426/06, the Commission Contribution to the Inter-institutional Negotiations on the Proposal for renewal of the Inter-institutional Agreement on budgetary discipline and improvement of the budgetary procedure, and No. 7421/1/06, Draft Decision on the system of the European Communities’ own resources (//EC, Euratom); and supports the Government’s objective of securing agreement on the Inter-institutional Agreement for the 2007-13 Financial Perspective and the Own Resources Decision in line with the agreement reached by Heads of Government at the December European Council."