HC Deb 07 July 1988 vol 136 cc655-6W
Mr. Teddy Taylor

To ask the Prime Minister what was the size of the supplementary finance for the European Economic Community agreed at the recent Council meeting; and if this spending will fall to be included within the new financial limits agreed for European Economic Community spending in 1988.

The Prime Minister

On 24 June, the member states confirmed that intergovernmental agreement to provide supplementary finance of up to 7.1 becu (some £5 billion) to help finance the 1988 Community budget, pending entry into force of the new Council decision on the Community's own resources. The United Kingdom's contribution will be up to some 1.1 becu (around £750 million), though this will be substantially offset by extra receipts and abatement. Payments under the intergovernmental agreement will be non-repayable advances of sums due when the new own resources decision enters into force. Total financing for the 1988 budget will be within the new own resources ceiling of 1.2 per cent. of Community gross national product (an increase of some 25 per cent. on the current ceiling). Indeed, it will be within the annual sub-ceiling for 1988 of 1.15 per cent. of gross national product.