David Cameron told to reject EU call to share budget details

Brussels summit: David Cameron was meeting EC president José Manuel Barroso
10 April 2012
WEST END FINAL

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Tory Eurosceptics and Liberal Democrats today urged David Cameron to "stand firm" against other European Union leaders seeking to force through new budget rules.

They demanded that the Prime Minister, who was travelling to Brussels for his first EU summit, reject plans being pushed by German chancellor Angela Merkel to force member states to share secret details of their budgets with the European Commission and other EU finance ministers.

They also opposed penalties, such as restricting voting rights, for countries who breach economic rules.

"It's completely and utterly beyond the pale," said leading Eurosceptic MP Bill Cash.

Referring to Margaret Thatcher's famous wielding of her handbag during EU rebate negotiations in the early Eighties, Mr Cash added: "If necessary, he [Mr Cameron] should use a sandbag, not a handbag, to defend the UK."

Conservative MEP Daniel Hannan said: "The EU is planning a massive power grab."

Liberal Democrat deputy leader Simon Hughes rejected the budget proposal as "over the top".

European Commission president José Manuel Barroso denied there was a power grab but he admitted that the economic crisis is helping to forge the "European project" of ever-closer union.

Addressing MEPs on the eve of a summit discussing plans for tight new financial controls on member states, he insisted any measures would be agreed in co-operation with national authorities.

But Mr Barroso admitted it was easier now to push EU leaders into deals when the chips were down.

"Once again, we can see that a crisis can accelerate decision-making when it crystallises political will. Solutions that seemed out of reach only a few years or even months ago are now possible," he said. But Mr Cameron is set to rule out Britain being part of the peer review of the national Budget before it has been presented to the Commons.

Neither will the UK expect to be subject of tougher financial sanctions against countries breaching EU debt and deficit rules, originally designed to apply just to the eurozone.

Mr Cameron started his day with a pre-summit private breakfast with Mr Barroso, making clear that Britain strongly supports economic co-ordination and reform, and is in favour of a new levy on banks to fund any future need to bail out failing financial institutions — taking the burden off taxpayers. But he was due to underline that London believes EU measures to shore up the euro's credibility should apply to the 16 eurozone member states, and not the rest.

Meanwhile, Mr Cameron has slapped down MPs who complained the new Commons expenses system is too strict, telling them they must make the reforms work. He spoke as Labour's Jim Sheridan and Lib-Dem Rob Russell called for a "Commons credit card" to make it easier for them to run up bills without dipping into their own pockets.

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