HC Deb 12 March 1998 vol 308 cc308-9W
32. Mr. Wilkinson

To ask the Chancellor of the Exchequer what estimate he has made of the net cost to HM Treasury of the United Kingdom's contribution to the EU under the next quinquennial financial perspective. [32524]

Mrs. Liddell

In July 1997 the European Commission issued outline proposals for the next Financial Perspective, which they proposed should run from 2000 to 2006. These formed part of the Commission's Agenda 2000 communication, which also dealt with the enlargement of the Union to Cyprus and the states of central and eastern Europe, and the reform of its main policies.

Enlargement of the EU will deliver substantial economic benefits, as well as reinforcing freedom and democracy throughout the continent. This is the context for the Commission's financial proposals, which would imply a significant increase in net contributions, or reduction in net receipts, for all existing member states.

It would be premature to issue estimates of the amounts involved in advance of the Commission's more detailed proposals, which are expected shortly. In any case any assessment could reflect only the views of the Commission rather than the actual outcome, which will depend on negotiation between member states of the final Agenda 2000 package. The UK will, of course, argue in those negotiations for an approach to the EU's finances which matches the discipline which member states are applying to their domestic budgets.