§ Mr. Keyasked the Chancellor of the Exchequer if he will make a statement on the outcome of the latest meeting of the European Community Budget Council.
§ Mr. BrookeThe Budget Council met in Brussels on 16 January. I represented the United Kingdom.
609WThe Council considered compromise proposals put forward in a rectifying letter by the Commission for resolving the differences between the Council and the European Parliament over the 1987 Community budget. The Commission had proposed, among other things, that the maximum rate of increase in non-obligatory expenditure should be exceeded by 62 mecu (£39 million*) for commitment appropriations but should be respected for payment appropriations. The Commission proposed that this should be achieved without cutting back the European Parliament's second reading proposals on substantive budget lines, by making provision for negative reserves of 124 mecu (£78 million) for commitment appropriations and 89 mecu (£56 million) for payment appropriations.
The United Kingdom opposed these proposals and the Council did not agree to them, or to certain variant proposals which were also discussed. The Council's position therefore remains as set out in the Council's second reading budget of 27 November, about which I reported to the House on 2 December 1986, at columns 598–99.
*All conversions in this answer are made at the 1987 Community Budget exchange rate of 1.5939 ecu to the £.