Bulgaria Asked to Give EUR 7 M More for EU's 2015 Budget

Bulgaria in EU | October 24, 2014, Friday // 19:31|  views

Photo by BGNES

Sofia should transfer an additional EUR 7 M installment to EU's budget, the EU Commission announced Friday.

The new estimates are based on a recently-adopted model which uses revenues from income tax and GDP growth to set the amount of money each member state should send to Brussels.

Ireland, Italy, Cyprus, Latvia, Malta, the Netherlands and even Greece (with EUR 90 M in a) will also have to make fresh contributions as their economic development in 2014 was better than expected.

However, all their sums are small if compared to that of the UK, which not has to give EUR 2.1 B more, with the ruling provoking tensions between Brussels and London.

British Prime Minister David Cameron has vowed to oppose what he describes as a "completely unjustified and unacceptable" extra EU budget bill worth EUR 2.1 B.

As the row unfolded during the second day of the European Council summit in Brussels, Cameron pledged to use "every way possible" to prevent the payment of London's new bill.

He pointed a finger at the new EU Commission, which was approved by European Parliament earlier this week, blaming it for not delivering "satisfactory answers" about the new budget calculations, according to the EUObserver.

"It is an unacceptable way to treat a country which is one of the biggest contributors to the EU."

"We are not going suddenly to get out our cheque book and write a cheque for 2bn euros. It is not going to happen," the BBC quoted him as saying.

Under the latest estimates London would have to give some 20% more than it does on an annual basis. Britain, which is the EU's second-largest economy, has also seen bigger recent GDP growth than projected.

At the same time a number of member states, including Germany and France, will see tranches of their installment transferred back to them, with some EUR 780 M to be returned to Berlin and over EUR 1 B to Paris.

Combined with EU officials' failure to explain how precisely the new estimates are made, the row has triggered another budget meeting scheduled for November on which the matter should be settled among finance ministers member states.

The EU's gross output has turned out to be some 2.5% up than what was previously thought after the new method, including a range of areas (also drugs trade and prostitution), was applied by Eurostat, Europe's statistics body.

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Tags: Bulgaria, UK, France, Germany, David Cameron, budget, EU, drugs, prostitution, eurostat, GDP, EU Commission


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