This Friday, the Prime Minister is expected to make a speech setting out his position on returning some decisions from Brussels to Westminster and on holding a referendum on the outcome.
Much of the recent debate that has been provoked by the prospect of this speech has been about whether or not Britain should renegotiate its membership of the EU and, if so, which powers we should seek back.
No attention whatsoever has been paid by mainstream commentators to the methods by which any renegotiation could occur.
Essentially, a phony debate has been conducted, no doubt encouraged by Number 10, about the desirability of renegotiation and not its feasibility. But the PM's evident interest in 'substance' over 'process' in fact highlights the vulnerability of his EU policy.
Because all the potential methods of initiating a discussion with the EU about the balance of powers between Westminster and Brussels - short of informing the EU that the UK is leaving - are highly unlikely to deliver a formal negotiation, nevermind agreement.
The credibility of David Cameron's forthcoming speech, and the likelihood of any referendum, depend entirely on the Prime Minister setting out a feasible method of securing a renegotiation.
Three methods
There are only three methods by which David Cameron can attempt to initiate discussion about a return of powers from the EU to Britain.
1. Use forthcoming negotiations over the proposed EU 'fiscal union' treaty to try to secure UK opt-outs from other areas of the treaty. This is the method David Cameron and other supporters of renegotiation tend to cite. But there are many problems with this strategy.
First, because other member states could easily dismiss any attempt to broaden the negotiations beyond proposed treaty changes, it would involve playing extreme hardball with the EU by refusing the approve changes designed to secure the future of the euro until UK opt-outs were granted. As well as being politically dramatic - a potential tactic that has already been described as 'blackmail' by the German government - this would leave David Cameron open to charges of hypocrisy, since the government has said that it supports greater fiscal union for the eurozone countries in order to reduce the effects of its instability on the UK economy.
It is not credible relative to his position on the eurozone, politically likely nor desirable for Britain's relations with other European countries, for the Prime Minister to threaten to withhold his consent from the new treaty unless agreement is reached on a return of powers to Britain.
2. Invoke Article 48 of the EU treaty, which opens a convoluted process to revise the treaty on a proposal from a member government, the Commission or the European Parliament. But there are many hurdles in this process that the government is unlikely to overcome. Such a proposal must first achieve majority support within the European Council. Then, the proposed amendments must be approved by a Convention drawn from representatives of all the member states governments and their national parliaments, the European Parliament and the Commission. The EU official chairing this body will be responsible for determining the "consensus" opinion of the Convention on the proposed amendments. Formal votes will not be taken. Once this has concluded its deliberations, a conference of representatives of the member countries will decide finally what amendments should be made to the EU treaty.
3. If this fails, the only other option is for a government to invoke
Article 50 of the treaty. This covers the arrangements for arriving at a new relationship between a member country wishing to leave the EU and the European Council, the body on which the other political heads of state are represented. Given that David Cameron says he does not support Britain leaving the EU this is clearly not an option he would consider viable. But it is the only method by which a significant renegotiation can be guaranteed.
Who will agree?
Prominent figures across Europe have already denounced the idea that Britain should be permitted to renegotiate its membership of the EU.
Ireland’s deputy prime minister, Eamon Gilmore, has said that there cannot be "different forms of membership… There cannot be flexibility on the core conditions. You cannot have a European Union if you end up with 27 different forms of membership."
The Polish Foreign Minister Radek Sikorski, has already gone on record as saying to David Cameron: "Please don't expect us to help you wreck or paralyse the EU."
Speaking after December's meeting of the European Council, French President Francois Hollande indicated his opposition to repatriating EU powers, saying: "When a country makes a commitment, generally, it’s for life. So I think the treaties are there to be abided by. And so far I haven’t heard Mr Cameron at a European Council asking to opt out of certain competences ... Europe isn’t a Europe where competences could be withdrawn."
The Italian Prime Minister Mario Monti said that, rather than renegotiate, Britain must be asked the fundamental question: "Do you want to remain in the European Union?"
And President of the European Council, Herman Van Rompuy, said: "If every member state were able to cherry-pick those parts of existing policies that they most like, and opt out of those they least like, the union in general, and the single market in particular, would soon unravel."
Delay, distraction?
Where, in this, does David Cameron believe lies the support he needs to secure agreement to British opt-outs?
The unfeasibility of renegotiation makes the PM's strategy look far more like delay and distraction than a response to public concerns about the EU's powers.
This Friday, the mainstream media must focus on exposing the feeble foundations of his EU policy. If David Cameron is serious about renegotiation, he must first notify the EU that Britain will leave.
Wednesday, 16 January 2013
EU renegotiation is not feasible from within
Tuesday, 15 January 2013
DM letter: Pryce so wrong on the EU
The DM has a letter in today's Evening Standard in response to a comment piece published yesterday by the economist Vicky Pryce.
In her article, Pryce repeated a number of claims and myths about the impact of the EU, some so detached from reality it's hard to imagine from where they can possibly have emerged, beyond simply someone's fevered imagination.
The full version of the DM's response is reproduced below:
----------------------------------------------------------------------
Dear Sir,
No wonder Vicky Pryce thinks this is no time to seek a new deal with the EU (Comment, 14 January). Her understanding of the EU's impact is wrong in every key respect.
She says "85% percent of our budget contribution comes back to the UK", but Treasury figures for 2010-11 show the figure is just over 57% - a net cost of £8.8bn that year alone. Pryce also says "regulations are mostly national", despite a House of Commons Library study from October 2010 showing in fact just over half of new laws now have their origins in Brussels.
Her concern about the EU market becoming more difficult to access surely makes the highly unlikely assumption that Britain could not achieve a free trade agreement as part of any new relationship with the EU - a deal that our trade deficit with the EU shows would be in the interests of EU businesses far more than that of UK plc.
Overcoming ignorance about the EU through a proper national debate on the basis of facts and giving us all the chance to make an informed decision about Britain's best path to prosperity in the 21st century is exactly why David Cameron must promise to hold an EU referendum.
Yours faithfully,
----------------------------------------------------------------------
Pryce's article comes on the back of a recent propaganda onslaught by political and business elites seeking not only to intimidate the Prime Minister from seeking any change in Britain's relationship with the EU to bring decisions back to Westminster, but also to deny the rest of us a real choice about Britain's future and how we are governed.
In his speech on Friday, David Cameron is expected to announce an intention to renegotiate aspects of the EU's powers and hold a referendum on the outcome sometime after the next general election (IF there is a new 'fiscal union' treaty, IF other countries agree to renegotiate, IF they agree to hand back EU powers, and IF he wins the 2015 election outright).
Despite the likely dependence of such a pledge on a range of improbable developments, the temperature of the EU debate is nevertheless rising. The last few weeks have seen the opening skirmishes of a referendum battle, which David Cameron's speech on Friday may well exacerbate over the coming months and years into full political war about the best course for Britain's democracy and future prosperity.
In her article, Pryce repeated a number of claims and myths about the impact of the EU, some so detached from reality it's hard to imagine from where they can possibly have emerged, beyond simply someone's fevered imagination.
The full version of the DM's response is reproduced below:
----------------------------------------------------------------------
Dear Sir,
No wonder Vicky Pryce thinks this is no time to seek a new deal with the EU (Comment, 14 January). Her understanding of the EU's impact is wrong in every key respect.
She says "85% percent of our budget contribution comes back to the UK", but Treasury figures for 2010-11 show the figure is just over 57% - a net cost of £8.8bn that year alone. Pryce also says "regulations are mostly national", despite a House of Commons Library study from October 2010 showing in fact just over half of new laws now have their origins in Brussels.
Her concern about the EU market becoming more difficult to access surely makes the highly unlikely assumption that Britain could not achieve a free trade agreement as part of any new relationship with the EU - a deal that our trade deficit with the EU shows would be in the interests of EU businesses far more than that of UK plc.
Overcoming ignorance about the EU through a proper national debate on the basis of facts and giving us all the chance to make an informed decision about Britain's best path to prosperity in the 21st century is exactly why David Cameron must promise to hold an EU referendum.
Yours faithfully,
----------------------------------------------------------------------
Pryce's article comes on the back of a recent propaganda onslaught by political and business elites seeking not only to intimidate the Prime Minister from seeking any change in Britain's relationship with the EU to bring decisions back to Westminster, but also to deny the rest of us a real choice about Britain's future and how we are governed.
In his speech on Friday, David Cameron is expected to announce an intention to renegotiate aspects of the EU's powers and hold a referendum on the outcome sometime after the next general election (IF there is a new 'fiscal union' treaty, IF other countries agree to renegotiate, IF they agree to hand back EU powers, and IF he wins the 2015 election outright).
Despite the likely dependence of such a pledge on a range of improbable developments, the temperature of the EU debate is nevertheless rising. The last few weeks have seen the opening skirmishes of a referendum battle, which David Cameron's speech on Friday may well exacerbate over the coming months and years into full political war about the best course for Britain's democracy and future prosperity.
Wednesday, 12 December 2012
EU's admin costs to rise in 2013 to €8.4bn
Voting in Strasbourg today, MEPs have approved a €132.8bn (£107.2bn) EU
budget for 2013.The 2013 budget includes a 1.85% increase in the EU's admin costs from €8.3bn (£6.7bn) to €8.43bn (£6.83bn), at a time when member states on the other hand are making cuts to public services and national administration costs.
EU administration costs amounted to 5.6% of the EU budget in 2012, at €8.3bn (£6.7bn). This will rise to 6.35% in the 2013 budget, showing that the EU's running costs - such as pay and perks for EU staff, plus the cost of buildings and facilities - are growing as a proportion of the overall budget, despite Europe's financial difficulties.
The deal also includes an extra €6bn (£4.86bn) added to the 2012 budget to cover a shortfall in the EU's funding for this year. This is less than the €9bn (£7.29bn) the Commission was demanding, likely resulting in a further request for additional funding being made by the EU as early as September 2013.
The addition of this extra €6bn to the 2012 budget gives the appearance that EU spending in 2013 will fall in comparison. But this does not take into account extra requests for funding predicted by the Commission later next year.
This process of annual and subsequent amending budgets to make up funding shortfalls is making the patterns of the EU's actual spending more and more opaque.
EU Ministers must still formally approve the deal, but difficulties are not foreseen since the EU's annual budgets are agreed by majority vote. Member governments demanding a budget freeze or cuts are likely to be over-ruled by the majority (17) of net beneficiaries.
David Cameron is therefore powerless to stop Britain's payments to the EU rising in 2013 and must now focus on the 2014-2020 budget framework negotiations in a bid to stem our liability to fund the EU's ever-increasing demands for public money.
A new meeting of the European Council - comprising the heads of state and government of EU member countries - is expected in early February to try to hammer out a deal on the EU's spending framework from 2014-2020.
Labels:
eu budget,
european commission,
european parliament
Monday, 10 December 2012
EU's 2013 budget to rise 2.9% amid UK spending cuts
The European Parliament's budget committee this evening approved a deal that will see the EU budget in 2013 rise by 2.9% to €132.8 billion
(£107.2bn).MEPs, meeting this week in Strasbourg, will vote in plenary on Wednesday 12 December on whether to approve the above-inflation increase in the EU's 2013 spending.
The deal was agreed by negotiators for the European Commission, Parliament and Council on Friday 30 November, but the details were withheld until last Tuesday, while UK attention was focussed on the Chancellor's upcoming Autumn Statement.
EU Ministers must also approve the deal but difficulties are not likely, since the EU's annual budget is agreed by majority vote. Member governments demanding a budget freeze or cuts are likely to be over-ruled by the majority (17) of net recipient countries.
The deal is likely to increase Britain's 2013 contribution to the EU budget by several hundred million pounds. This means that some of the money saved through cuts to public spending outlined in George Osborne's own budget statement last week is likely to be spent in 2013 not on reducing our deficit or supporting growth, but on increased UK payments to the EU.
Commission demands
Prior to recent negotiations, the European Commission had been demanding a 2013 budget of just under €138 billion (£111.5bn).
Administration costs amounted to 5.6% of the EU budget in 2012 - €8.3bn (£6.7bn) - and the proportion proposed for 2013 has not yet been revealed. Much of this is very visibly wasted on excessive EU pay, perks, grandiose facilities together with EU self-aggrandisment.
Examples include the EU's £45m tribute to itself, the House of European History, and a £250m refurbished 'RĂ©sidence Palace' building for the EU Council and its president Herman van Rompuy, due to open next year.
Future framework
Annual budgets are a translation of the current Multiannual Financial Framework (MFF) covering 2007-2013. The EU's next MFF, setting funding rules from 2014-2020, is currently being negotiated and requires unanimous approval of EU member governments.
Talks on the new MFF broke down in November, according to the Prime Minister as a result of disatisfaction by several member states over the European Commission's intransigence on cuts to administration costs. EU taxes have also been proposed in the context of the bloc's future funding and it has been suggested that member governments could not agree on whether the EU should be given powers to tax citizens directly. A further summit is expected in January.
On the new MFF, David Cameron has pledged "at best a cut, at worst a freeze" in the seven-year spending limits, although Britain's contribution may rise in any case. On 31 October, rebel Conservatives and Labour MPs teamed up to defeat the government, with a majority voting for a real terms cut in the EU's spending.
If no agreement is reached between governments and EU institutions in time to allow for legal ratification of the new deal by the end of 2013 - under a political, rather than legal, Inter-Institutional Agreement - the 2013 budget will be rolled over year-by-year with a built-in 2% rise to cover inflation.
Friday, 23 November 2012
Leaked budget draft shows EU admin costs to rise 13%
A draft of the
EU budget leaked today has revealed no change in a proposed significant rise in
the EU's administration costs.
The latest draft, circulated by EU Council president Herman van Rompuy and revealed by Open Europe, shows the Administration budget at €62.6bn - a 12.8% increase over the €55.5bn in the 2007-13 MFF - rather than falling with other public administration cuts in EU member countries.
The European Commission, supported by the European Parliament, originally proposed a 5.8% rise in the overall budget framework to €1.033tr. This included a 6% share for Administration, taking the cost up to €62bn.
The EU's administration costs have become the focus of today's negotiations in Brussels, with the Prime Minister taking aim in particular at the pay and perks of EU officials. It would be particularly difficult for him politically to return without securing a significant cut in the EU's admin costs.
It is also not clear to what extent discussion over direct EU taxes are forming part of the EU budget negotiations.
Herman van Rompuy last week tried to turn the spotlight on Britain by proposing that proceeds from a new Financial Transactions Tax - in which Britain will not participate - should be contributed to Brussels and the amount offset against a country's contributions to the EU budget.
Last year, the European Commission also proposed replacing the existing VAT-based contribution to the EU budget with a "modernized VAT" to arise "directly from the citizen to the EU".
The plan is thought to entail VAT levied at a fixed percentage by all member states in addition to national rates - likely to be a 1% uniform rate, rather than the 0.3% share of UK revenues the EU collects currently - and then transferred directly to the EU budget.
If no agreement on the EU budget is reached in time to allow for legal ratification of the new deal by the end of 2013 - under a political, rather than legal, Inter-Institutional Agreement - the 2013 budget will be rolled over year-by-year with a built-in 2% rise to cover inflation.
The latest draft, circulated by EU Council president Herman van Rompuy and revealed by Open Europe, shows the Administration budget at €62.6bn - a 12.8% increase over the €55.5bn in the 2007-13 MFF - rather than falling with other public administration cuts in EU member countries.
The European Commission, supported by the European Parliament, originally proposed a 5.8% rise in the overall budget framework to €1.033tr. This included a 6% share for Administration, taking the cost up to €62bn.
The EU's administration costs have become the focus of today's negotiations in Brussels, with the Prime Minister taking aim in particular at the pay and perks of EU officials. It would be particularly difficult for him politically to return without securing a significant cut in the EU's admin costs.
It is also not clear to what extent discussion over direct EU taxes are forming part of the EU budget negotiations.
Herman van Rompuy last week tried to turn the spotlight on Britain by proposing that proceeds from a new Financial Transactions Tax - in which Britain will not participate - should be contributed to Brussels and the amount offset against a country's contributions to the EU budget.
Last year, the European Commission also proposed replacing the existing VAT-based contribution to the EU budget with a "modernized VAT" to arise "directly from the citizen to the EU".
The plan is thought to entail VAT levied at a fixed percentage by all member states in addition to national rates - likely to be a 1% uniform rate, rather than the 0.3% share of UK revenues the EU collects currently - and then transferred directly to the EU budget.
If no agreement on the EU budget is reached in time to allow for legal ratification of the new deal by the end of 2013 - under a political, rather than legal, Inter-Institutional Agreement - the 2013 budget will be rolled over year-by-year with a built-in 2% rise to cover inflation.
Tuesday, 20 November 2012
Commissioner: EU should take control of taxes
EU Commissioner Viviane Reding has said that the EU should
take control of taxes from national governments.
Speaking at a debate in Berlin last week, the EU justice commissioner said: "The veto right in the EU council has to be scrapped. Qualified majority voting should be extended to more policy areas, for instance taxation".
Such a move would prevent any single member country, or even minority of countries, blocking Council of Ministers decisions to impose new EU taxes.
Discussion of EU taxes is likely to form part of the EU budget negotiations at a summit of leaders later this week (22-23 November), sold as a way for member states to be 'unburdened' from contributions to the EU budget.
However, the burden of funding the EU would simply be passed to people and businesses directly and, most importantly for many in Brussels, the EU's right to govern and increase those taxes in future would be conceded.
Tax plans
EU taxes have come back on the agenda as a way for the EU to raise more money in "own resources" and bypass the problematic task of requesting ever-increasing amounts of money from national governments.
Member countries currently pay towards the EU budget based on their gross national income, as well as VAT and customs duties.
The EU has already benefited financially from recent rises in VAT, imposed in many of its member countries as part of austerity programmes.
The Commission has also tried to drive through an EU Financial Transactions Tax (FTT) on banks which, due to opposition from a number of governments, is now only set to be adopted by ten member states. Without a veto, the FTT could have been imposed on all EU members by majority voting and particularly threatened the City of London's financial sector if the UK were forced to participate.
Budget Commissioner Janus Lewandowski has also proposed the EU collecting a climate tax on air traffic that would put up the price of holiday flights and expressed interest in governing other areas of taxation, pressing governments as a first step to agree to co-ordinate the way corporation tax is calculated and to impose minimum rates of fuel taxes on energy bills and road transport, linked to levels of carbon emissions.
Decision time
The right to directly tax businesses and citizens is one of the few powers left exclusively to national governments within the EU. For the EU to gain this power would require a change to the EU treaty, ratified by each member country.
It would be politically impossible for David Cameron to agree to such a change. However, this latest statement by Viviane Reding once again reveals the intentions of those driving the EU to take further fundamental powers from member countries towards becoming a fully-fledged pan-European government.
Advancing EU political integration brings into sharper focus the fundamental decision about Britain's future we must soon make between undiplomatically blocking political union if that is what other EU countries want or letting them go their own way and seeking for ourselves a new, looser, more flexible relationship with our European neighbours that respects democracy.
-------------------------------------------------------------
Read more ...
Summary - Revision of the Energy Taxation
Directive
Speaking at a debate in Berlin last week, the EU justice commissioner said: "The veto right in the EU council has to be scrapped. Qualified majority voting should be extended to more policy areas, for instance taxation".
Such a move would prevent any single member country, or even minority of countries, blocking Council of Ministers decisions to impose new EU taxes.
Discussion of EU taxes is likely to form part of the EU budget negotiations at a summit of leaders later this week (22-23 November), sold as a way for member states to be 'unburdened' from contributions to the EU budget.
However, the burden of funding the EU would simply be passed to people and businesses directly and, most importantly for many in Brussels, the EU's right to govern and increase those taxes in future would be conceded.
Tax plans
EU taxes have come back on the agenda as a way for the EU to raise more money in "own resources" and bypass the problematic task of requesting ever-increasing amounts of money from national governments.
Member countries currently pay towards the EU budget based on their gross national income, as well as VAT and customs duties.
The EU has already benefited financially from recent rises in VAT, imposed in many of its member countries as part of austerity programmes.
The Commission has also tried to drive through an EU Financial Transactions Tax (FTT) on banks which, due to opposition from a number of governments, is now only set to be adopted by ten member states. Without a veto, the FTT could have been imposed on all EU members by majority voting and particularly threatened the City of London's financial sector if the UK were forced to participate.
Budget Commissioner Janus Lewandowski has also proposed the EU collecting a climate tax on air traffic that would put up the price of holiday flights and expressed interest in governing other areas of taxation, pressing governments as a first step to agree to co-ordinate the way corporation tax is calculated and to impose minimum rates of fuel taxes on energy bills and road transport, linked to levels of carbon emissions.
Decision time
The right to directly tax businesses and citizens is one of the few powers left exclusively to national governments within the EU. For the EU to gain this power would require a change to the EU treaty, ratified by each member country.
It would be politically impossible for David Cameron to agree to such a change. However, this latest statement by Viviane Reding once again reveals the intentions of those driving the EU to take further fundamental powers from member countries towards becoming a fully-fledged pan-European government.
Advancing EU political integration brings into sharper focus the fundamental decision about Britain's future we must soon make between undiplomatically blocking political union if that is what other EU countries want or letting them go their own way and seeking for ourselves a new, looser, more flexible relationship with our European neighbours that respects democracy.
-------------------------------------------------------------
Read more ...
http://europa.eu/rapid/press-release_MEMO-11-238_en.htm
Lesiglation - European Commission proposes to overhaul energy taxation rules
http://ec.europa.eu/taxation_customs/taxation/excise_duties/energy_products/legislation/index_en.htm
Q&A - Enhanced co-operation on Financial Transactions Tax
http://europa.eu/rapid/press-release_MEMO-12-799_en.htm
European Commission - Common Consolidated Corporate Tax Base
http://ec.europa.eu/taxation_customs/taxation/company_tax/common_tax_base/index_en.htm
Lesiglation - European Commission proposes to overhaul energy taxation rules
http://ec.europa.eu/taxation_customs/taxation/excise_duties/energy_products/legislation/index_en.htm
Q&A - Enhanced co-operation on Financial Transactions Tax
http://europa.eu/rapid/press-release_MEMO-12-799_en.htm
European Commission - Common Consolidated Corporate Tax Base
http://ec.europa.eu/taxation_customs/taxation/company_tax/common_tax_base/index_en.htm
Thursday, 1 November 2012
Our politicians can't stop the EU budget rising
Amid the entertaining political theatre of yesterday's EU budget vote lies a far more fundamental debate than whether the amount Britain's pays into the EU budget should be frozen or cut.
A debate that will soon come much more to the fore.
Much of the Westminster Village reaction to the government's defeat in Parliament last night by 13 votes is inevitably rotating around whether David Cameron is in control of his party; whether he will wield his veto to block a rise in the EU budget; whether Labour will support that veto and what will happen if the Prime Minister tries to secure MPs' approval for a deal that does not involve a budget cut.
Throw in some simplistic comparisons to John Major's Maastricht woes in the early 1990s and a mixture of the above is what the political commentariat are serving up for today's consumption.
But all that is a side show. Sure, a bit of discomfort for David Cameron and the fate of a few billion pounds rests on one option or another and the Democracy Movement, more than most, wants to see Britain's payments to the EU cut - in fact, far more dramatically than anything currently being considered.
Back in 2005, when the EU's last 2007-2014 Multi-Annual Financial Framework (MFF) was being debated, the DM launched its Stop the Cheques campaign, contrasting the cost of the EU with various cuts being made then to public services (see campaign postcards pictured above). A theme that is today, thanks partly I'm sure to our efforts making the case to MPs over the years since - but no doubt mostly due to the subsequent financial and debt crisis - a very strong aspect of debate on the subject among MPs across the party divide.
Impossible freeze
No, the real punch to today's events will be delivered when the EU meets to hammer out a deal on the EU budget on 22-23 November.
For David Cameron to deliver his policy he must very likely veto an EU deal, but even then the EU budget will continue to rise with inflation anyway. It is certainly beyond his power to deliver Parliament's view that there should be real-terms cuts, as demonstrated by yesterday's vote.
Then, or soon after, all the current chatter about EU budget vetoes, freezes and cuts will be shown to have been pointless. The various positions over which our Goverment (freeze or veto), Labour opposition (cut but no veto) and Parliament (real terms cut) have so publicly clashed this week will be revealed as a total waste of time due to the nature of the brave, new, post-democratic EU in which we are currently embroiled.
Pointless veto
The domestic democratic agony we have just witnessed will have served only make more glaring the reality: It is actually impossible to freeze, and certainly to cut, the EU budget. There is nothing our Government or Parliament can do - even if working in unison - to stop the amount we hand over to the EU rising without completely re-writing our treaty links.
Seventeen of the EU's twenty seven member countries are net recipients from the EU budget, changes to which must be agreed unanimously. If no agreement is reached, the budget reverts to a cut-and-paste, year-by-year agreement with an in-built increase in line with inflation.
It is blatantly in the interest of the vast majority of net recipient countries to block any attempt to freeze the EU budget and certainly to cut it since, if unanimous agreement is not reached, the budget rises anyway.
The system is loaded in favour of the budget recipients and a perpetual increase. Both our Government and Parliament will be shown to be completely impotent, their views on the changes that should be made to the budget over-ruled and self-serving EU treaty clauses enacted to keep public cash flowing to Brussels at an ever-increasing level.
Real question
Our financial exposure to the EU will be demonstrably out of control, regardless of the cuts being suffered by public services. Our democratic institutions powerless to secure change. So what then? What does this say about democracy in today's EU-dominated Europe and is that powerlessness a future we wish to pursue?
Thanks to the brilliant work yesterday by MP Mark Reckless and supporters of his amendment, this is the far more fundamental question that will shortly hit home about Britain's relationship with the EU than would have hit the headlines through any fleeting debate about whether we should hand over a bit more, or a bit less, cash.
The soon-to-be-apparent real achievement of yesterday's events will be to have highlighted to a fuller extent the nature of the increasingly post-democratic state in which EU member countries are currently confined.
So bring on the EU summit later this month and the start of the real debate - about how to secure a more democratic future for Britain and hopefully Europe too.
A debate that will soon come much more to the fore.
Much of the Westminster Village reaction to the government's defeat in Parliament last night by 13 votes is inevitably rotating around whether David Cameron is in control of his party; whether he will wield his veto to block a rise in the EU budget; whether Labour will support that veto and what will happen if the Prime Minister tries to secure MPs' approval for a deal that does not involve a budget cut.
Throw in some simplistic comparisons to John Major's Maastricht woes in the early 1990s and a mixture of the above is what the political commentariat are serving up for today's consumption.
But all that is a side show. Sure, a bit of discomfort for David Cameron and the fate of a few billion pounds rests on one option or another and the Democracy Movement, more than most, wants to see Britain's payments to the EU cut - in fact, far more dramatically than anything currently being considered.
Back in 2005, when the EU's last 2007-2014 Multi-Annual Financial Framework (MFF) was being debated, the DM launched its Stop the Cheques campaign, contrasting the cost of the EU with various cuts being made then to public services (see campaign postcards pictured above). A theme that is today, thanks partly I'm sure to our efforts making the case to MPs over the years since - but no doubt mostly due to the subsequent financial and debt crisis - a very strong aspect of debate on the subject among MPs across the party divide.
Impossible freeze
No, the real punch to today's events will be delivered when the EU meets to hammer out a deal on the EU budget on 22-23 November.
For David Cameron to deliver his policy he must very likely veto an EU deal, but even then the EU budget will continue to rise with inflation anyway. It is certainly beyond his power to deliver Parliament's view that there should be real-terms cuts, as demonstrated by yesterday's vote.
Then, or soon after, all the current chatter about EU budget vetoes, freezes and cuts will be shown to have been pointless. The various positions over which our Goverment (freeze or veto), Labour opposition (cut but no veto) and Parliament (real terms cut) have so publicly clashed this week will be revealed as a total waste of time due to the nature of the brave, new, post-democratic EU in which we are currently embroiled.
Pointless veto
The domestic democratic agony we have just witnessed will have served only make more glaring the reality: It is actually impossible to freeze, and certainly to cut, the EU budget. There is nothing our Government or Parliament can do - even if working in unison - to stop the amount we hand over to the EU rising without completely re-writing our treaty links.
Seventeen of the EU's twenty seven member countries are net recipients from the EU budget, changes to which must be agreed unanimously. If no agreement is reached, the budget reverts to a cut-and-paste, year-by-year agreement with an in-built increase in line with inflation.
It is blatantly in the interest of the vast majority of net recipient countries to block any attempt to freeze the EU budget and certainly to cut it since, if unanimous agreement is not reached, the budget rises anyway.
The system is loaded in favour of the budget recipients and a perpetual increase. Both our Government and Parliament will be shown to be completely impotent, their views on the changes that should be made to the budget over-ruled and self-serving EU treaty clauses enacted to keep public cash flowing to Brussels at an ever-increasing level.
Real question
Our financial exposure to the EU will be demonstrably out of control, regardless of the cuts being suffered by public services. Our democratic institutions powerless to secure change. So what then? What does this say about democracy in today's EU-dominated Europe and is that powerlessness a future we wish to pursue?
Thanks to the brilliant work yesterday by MP Mark Reckless and supporters of his amendment, this is the far more fundamental question that will shortly hit home about Britain's relationship with the EU than would have hit the headlines through any fleeting debate about whether we should hand over a bit more, or a bit less, cash.
The soon-to-be-apparent real achievement of yesterday's events will be to have highlighted to a fuller extent the nature of the increasingly post-democratic state in which EU member countries are currently confined.
So bring on the EU summit later this month and the start of the real debate - about how to secure a more democratic future for Britain and hopefully Europe too.
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