The timing couldn’t
have been better if you are Farage or worse if you are Cameron. The outrage
over Brussels’ smash-and-grab raid on €2bn of British tax-payers’ money is
exacerbated by its timing. Whatever possessed the suits in the Berlaymont to
produce this IED just before a crucial by-election and almost on the eve of the
Great Palaver, the meeting of the EU summit? Stupidity? Or – more likely – the Eurocrats
don’t give a toss what the beastly British think.
It certainly
produced an unusual unanimity of view across the UK political spectrum. Cameron can never
emulate a Thatcher hand-bagging, but he certainly put a bit of stick about .
The Lib-Dems called it senseless. Farage talked about ‘vampires’. Miliband may
or may not have taken a view. For Cameron, he is facing a possible disaster in
Rochester and a Tory revolt over the European Arrest Warrant that Mrs May wants
to opt into despite voting against in when in Opposition.
The entire episode
falls firmly into the ‘you couldn’t make it up’ category.
The demand is based
on calculations going back 19 years for budget periods long since closed. The
EU accounts have not been signed off for about 13 years. The assessment of budget
share based on GDP is a Brussels construct that takes into account the proceeds
of prostitution and drug-trafficking. (How is the data collected? From the ladies’ and dealers’
tax returns?).
The spread of the demands and rewards piles
absurdity upon absurdity. Britain and the Netherlands are punished for success.
France has ruined its economy by Socialist profligacy, so it is rewarded with
€800 million. Europe’s biggest economy, Germany, gets €615 million which is
peanuts to them whilst bankrupt Greece gets clobbered for €71 million. Perhaps
it will pay with another German bail-out. Italy, teetering on the edge of economic
collapse, is another victim; it gets done for €268 million.
So what is Dave to do?
He will most likely
try to kick the can down the road past May 2017. He carefully left himself
wriggle-room by saying that Britain would refuse to pay on 1st December.
He can try diplomacy but any agreement between EU leaders would need the backing
of Merckel, and she has already said ‘Get used to it!’ He could mount a legal challenge
which could keep the tax-gatherers at bay for a long time. The retrospective
nature of the demand and the lack of notice could lead to some very interesting
legal exchanges.
He could get an agreement
to deduct the payments from future Budget contributions so that a lump sum now
would be avoided. He could try to get an agreement in the European Council
simply to ignore the demand, but persuading the countries that are getting
rebates to agree to this is almost certainly out of the question
Or just not pay.
The EU could launch
its own legal proceedings. The maximum penalty would be a fine of around €200
million annually; Britain could refuse to pay until the legal proceedings were
over, which could be a pretty long time.
At the end of the
day there will be a shabby, face-saving compromise.
But there is little
doubt that this Brussels stitch-up, irresponsible, unreasonable and ill-timed, has
been an enormous boost to the followers of Brexit.
It could be the tipping
point when the EU begins its slide down to the midden of history.
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