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London to bear brunt of tax on finance to fund higher EU spending
Date 30/06/2011 15:14  Author webmaster  Hits 1049  Language Global
30 JUN 2011

The City will bear the brunt of a soaring Brussels budget under a European Commission proposal to use financial transaction taxes to fund an extra £93bn needed for EU spending increases.

By Bruno Waterfield | The Telegraph

An expenditure demand yesterday for the 2014-2020 Brussels budgetary period will increase spending by 11pc and lead to additional British EU contributions of £1.5bn a year at a time of deep cuts to national spending.

The Commission's proposed "multi-annual financial framework" will take EU spending to £872.5bn over seven years, an increase of £41.3bn, or 5pc, on budgets for 2007 to 2013.

But the real cost to taxpayers of future EU spending emerges at an even higher figure, up another 3.9pc, or £31.8bn, when EU funding for research, reserves, crisis and "globalisation" funds moved "off balance sheet" are also factored in.

Prime Minister David Cameron has vowed to fight for an EU spending freeze and will threaten to wield a British veto to reject the challenge to national sovereignty in giving Brussels tax-raising powers to legislate new levies to fund itself.

"The EU has to take the same tough measures as national Governments are taking across Europe to tackle public deficits," said a Downing St spokesman. "Britain will also oppose new EU taxes which will introduce additional burdens for business and damage EU competitiveness."

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