EU revises budget calculations and demands extra payments

24 Oct 14
A number of European Union member states have been hit with unexpected bills to fund the EU’s budget, while other countries are expected to cash in.

The bill is based on new calculations of VAT and gross national income since 1995, which has prompted the EU to make financial adjustments. The calculations are used to decide how much each member state should contribute to the budget.

EU country leaders were, however, caught off-guard as details of the one-off bill were exposed as a summit in Brussels began today. The extra payments are due on December 1.

The UK being is the biggest loser and has been told to contribute an extra £1.7bn to the budget, because its economy has performed better than expected. UK Prime Minister David Cameron has demanded emergency budget talks with EU finance ministers to discuss the issue.

The Netherlands is also facing a bill of £506m, according to the leaked document published by the Financial Times, while Italy and Greece will have to pay an extra £268m and £70m, despite flagging growth, because of the size of their ‘black economies’.

France is set to receive a £800m rebate because its economy has performed so poorly and Germany is due to get back £780m.

Talks are ongoing in Brussels today.

 

 

Did you enjoy this article?

Related articles

Have your say

Newsletter

CIPFA latest

Most popular

Most commented

Events & webinars