§ 26. Mr. Marlow
asked the Chancellor of the Exchequer if he will make a statement on the effectiveness of the European Economic Community financial mechanism.
§ Mr. Brooke
The new EEC financial mechanism agreed at Fontainebleau is working effectively. The 1986 Community budget contains provision for a 1,400 million ecu (c £850 million) abtatement for the United Kingdom which is in respect of its excessive net contribution in 1985. The January and February VAT payments already made have each duly been abated by about £70 million. In addition, the United Kingdom has received the 1,000 mecu (£605 million) abatement agreed separately at Fontainebleau in respect of its excessive net contribution in 1984.