§ Mr. Foulkesasked the Secretary of State for Foreign and Commonwealth Affairs when he expects the budget rebate agreed at the Fontainebleau summit to be paid; and whether he expects it to be of the same value, in real terms, as that agreed at Fontainebleau.
§ Mr. RifkindOur abatement of 1,000 mecu for 1984 will be paid in 1985, as agreed at Fontainebleau and confirmed at the Foreign Affairs Council in Luxembourg on 2 October. Our abatements for 1985 and subsequent years will be deducted from our VAT payments in the budget year following the one in respect of which correction is made. No precise value was established at Fontainebleau: what was agreed was that our budgetary contribution should be reduced by two thirds of the difference between the share of VAT payments and the share of allocated expenditure. In sterling terms the size of the abatements will depend on the ecu/sterling rate in force at the time.
§ Mr. Foulkesasked the Secretary of State for Foreign and Commonwealth Affairs what currency was used for 449W calculating the budget rebate agreed at the Fontainebleau summit; and whether the value of the budget rebate in pound sterling terms will change as a result of the change in the composition of the European currency unit.
§ Mr. RifkindIt was agreed at Fontainebleau that we would receive our abatement of 1,000 mecu in respect of 1984 and that our abatement in respect of 1985 and subsequent years would he calculated as a percentage of our budgetary burden. The change in the composition of the ecu agreed by Finance Ministers on 15 September will have no direct implication for the sterling/ecu exchange rate or for the sterling equivalent of the 1,000 mecu.