§ Q9. Mr. Teddy Taylorasked the Prime Minister what assessment was made by the Ministers at the Fontainebleau summit of the impact on unemployment of the increase in public expenditure which will stem from their decisions on own resources.
§ The Prime MinisterThe Fontainebleau and Dublin European Councils agreed rules on budgetary discipline to restrict the future growth of the Community budget in line with the Member States' economic capacity to finance it. The new abatement system will also substantially reduce the United Kingdom's net contributions below what they would otherwise have been and keep our VAT rate below 1 per cent. The agreements are thus fully consistent with the Government's policy for improving economic growth and job prospects by better control of public expenditure.