§ Mr. Austin MitchellTo ask the Prime Minister whether she will publish in theOfficial Report (a) details of the ceiling on agricultural spending in each of the next five years, (b) her estimate of the maximum amount of spending which would have been permitted if the arrangement agreed at Fontainebleau had been adhered to; and if she will make a statement on what will happen under the new formula when the ceiling is reached if there are outstanding liabilities.
§ The Prime MinisterThe financial guidelines has been set at 27.5 becu — about £19 billion for 1988 and its annual rate of increase must not exceed 74 per cent. of the growth in Community gross national product. No estimates are available for the actual level of the guidelines after 1988. The guideline calculated under the previous arrangements would have been around 23 becu—about £16 billion—for 1988.
Expenditure in excess of the guideline would be permitted within limits set by the European Council only in the event of a substantial in-year fall in the dollar/ecu exchange rate which had a budget effect of more than 400 mecu — about £280 million. There is no provision for other exceptional circumstances.