UK told to pay an extra €2.1bn into EU budget
The European Union (EU) has told Britain to pay an extra €2.1bn to the EU budget over the next couple of weeks, as its economy performed better than other EU nations since 1995.
To compensate for its relative prosperity over the last two decades, the UK will have to make a top-up payment by 1 December, which amounts to almost a fifth of the country’s net contribution last year, while France will receive a €1bn refund.
“It’s not acceptable to just change the fees for previous years and demand them back at a moment’s notice," a Downing Street source was quoted as saying by the Financial Times.
“The European Commission was not expecting this money and does not need this money and we will work with other countries similarly affected to do all we can to challenge this.”
The EU has recently changed the system it calculates gross national income to include previously non-factored elements such as prostitution and illegal drugs and the broader range of calculation has resulted into the surcharge.
EU officials say the calculation is a reflection the longstanding practice of regulating contributions of countries according to their pace of growth.
“Britain’s contribution reflects an increase in wealth, just as in Britain you pay more to the Inland Revenue if your earnings go up,” Patrizio Fiorilli, a Commission spokesperson was quoted as saying.
The EU's decision comes at a very delicate time for David Cameron, whose party has had to contend with the rise in popularity of UKIP, NIgel Farage's party, which makes of Euro-scepticism one of the main points on its manifesto.