§ Mr. Austin Mitchell
asked the Prime Minister what steps she took at the June meeting of European Economic Community Heads of Government to ensure that expenditure in excess of the Budget in the current year will not be validated in 1988 through an increase in national contributions made possible by changing the present contribution formula or in any other way.
§ The Prime Minister
As I told the House on 1 July, at columns 493–94, the European Council agreed to a solution to the 1987 budgetary problems along the lines we had advocated. This is within this year's 1.4 per cent. VAT ceiling. On future changes to the system of contributions to the Community budget, I made clear at the European Council that before that issue is addressed there must be agreement on effective and binding control over Community spending.