§ Mr. Austin Mitchellasked the Prime Minister if she will make a statement on how the outcome of the Fontainebleau agreement among Heads of EEC Governments has fulfilled the Government's expectations.
§ The Prime MinisterThe Fontainebleau abatement arrangement has been working as agreed. We have received the 1,000 mecu (£605 million) we were promised in respect of 1984. The 1986 Community budget already contains provision for our abatement in respect of 1985 of 1,400 mecu (£900 million), from which we are benefiting through reduced VAT contributions at the rate of £75 million a month. The Commission and the Council have undertaken to uprate this abatement through a supplementary budget this year in the light of the latest information about our contributions to and receipts from the Community budget in 1985.