News story

PM in bid to cap EU budget

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

The Prime Minister has announced that he and other European leaders will call for a real-terms freeze in the EU budget for 2014 to 2020

In a press conference at the end of the EU Council in Brussels, Mr Cameron said he will publish a joint text with French President Nicolas Sarkozy, German Chancellor Angela Merkel and other European leaders.

Read the letter

In it, they will insist that the EU budget should rise by no more than the rate of inflation. Mr Cameron said it would put down “a firm marker” of their determination to keep the budget in check.

The PM said:

All around Europe, countries are tightening their belts to deal with their deficits. Europe cannot be immune from that. We want to see real budgetary restraint for 2014-20 - the time of the next financial perspective. That is why the text we will publish talks about at least a real-term freeze in the budget for that period.

The EU budget is set to rise by 2.91 per cent in 2011 and Mr Cameron said that he is also aiming for a lower increase for 2012.

He said:

Even 2.91 per cent means a lot of extra money going from Britain to Brussels so I want us to do even better in 2012.

The PM added that it was a “huge achievement” to get Britain, France and Germany to stand together united on the issue and a sign of “old friends coming together in a new and positive way.”

Speeches and Transcripts: EU Summit Press Conference