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George Osborne: "I will make sure we get a better deal for Britain"
Chancellor George Osborne is arguing the UK's case for not paying the EU an extra £1.7bn in a meeting of EU finance ministers in Brussels.
Ahead of the talks, Mr Osborne said the sum being asked for was "unacceptable" and he would get a "better deal".
David Cameron, who has vowed not to hand over any money by a 1 December deadline, said there would be a "major problem" if the issue was unresolved.
But several EU countries have said they are happy with the sums requested.
Italy, which currently holds the rotating presidency of the European Union and has itself been handed a surcharge, introduced a proposal on Friday to allow the UK to pay back the £1.7bn (2.1bn euros) in instalments.
'Precise and just'But some of Mr Osborne's counterparts in Europe suggested it was out of the question that the UK should contribute less than the sum demanded.
Magdalena Andersson, the Swedish finance minister, said the issue was a "technical" one while Poland's Mateusz Szczurek said the rules were "precise and just"
"The budget contributions are based on gross national income and I don't really believe that should be changed," he said.
Speaking in Helsinki, where he is attending a meeting of Nordic leaders, Mr Cameron said his views that the bill was too large and the timetable for paying it unfair had not changed.
Before the meeting of finance ministers, Treasury sources said Mr Osborne would continue to demand a cut in the bill's size.
'On the agenda'The Chancellor told journalists: "The demand that Britain should pay £1.7bn by the 1 December is unacceptable. I wanted this on the agenda. It is on the agenda. I will make sure we get a better deal for Britain."
However, a final agreement is not expected to be reached at Friday's meeting.
The BBC's political editor Nick Robinson told BBC Radio 4's Today programme that a compromise based on phasing in interest-free payments over a given time is one that David Cameron "will not be able to sell back home".
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Lord Hill: We need "practical solution" over tax bill
He added that "after the stance he has taken", Mr Cameron "needs the total figure cut rather than phasing in payments.
"If he doesn't get an offer of that, or George Osborne doesn't get it face-to-face in Brussels today, there will have to be more talks to get more concessions," he added.
UKIP leader Nigel Farage said the UK was short of allies in its attempts to re-negotiate the bill. "I keep hearing the prime minister say we won't pay by the first of December," he said. "Well I expect what it really means is we'll pay on the second of December."
'Practical solution'The surcharge follows an annual review of the economic performance of EU member states since 1995, which showed Britain had done better than previously thought.
Elements of the black economy - such as drugs and prostitution - have been included in the calculations for the first time.
Italy, Greece and Cyprus were also asked to make extra contributions, while France and Germany are set for refunds.
Speaking on Thursday, the UK's EU Commissioner Lord Hill appealed for calm and for a "practical solution" to be found.
"It seems to me that this is one of those classic examples you get from time to time, where something that a group of people think are technical matters suddenly, and in this case for perfectly understandable reasons, become highly political," he said.
| Losers | Additional sum to pay |
|---|---|
|
Source: Leaked EU Commission document |
|
|
United Kingdom |
£1,676m |
|
Netherlands |
£506m |
|
Italy |
£268m |
|
Greece |
£70m |
|
Cyprus |
£33m |
Winners |
Reduction |
|
France |
£801m |
|
Germany |
£614m |
|
Denmark |
£253m |
|
Poland |
£249m |
|
Austria |
£232m |
The row comes as the UK is seeking support for its campaign to change the way the EU operates and for more powers to be returned from Brussels to member states.
David Cameron has promised to renegotiate the UK's membership and hold a public vote on the UK's future in the EU in 2017 if he stays in power after next year's election.
European Commission spokesman Jakub Adamowicz said the £1.7bn sum was "not coming out of nowhere" and was based on "a very specific observation of the regulations".
He added that "the proportion between what the UK pays in and what it receives and how it benefits is actually a very, very positive one", and said the UK "should not lose sight of this global perspective" during the current debate.
'Synthetic anger'Former Conservative chancellor Ken Clarke told BBC Radio 4's Today that although it was "quite reasonable" not to pay a lump sum of £1.7bn by the 1 December, the UK did not default on its debts and a compromise will "depend on how good our case is".
He expressed confidence that Mr Osborne would negotiate a solution after there has been "a look at how the £1.7bn figure was arrived at".
Mr Clarke also said a lot of the anger about the bill was "synthetic", saying "it's all politics getting in the way of commons sense".
He added that if the EU was to be kept together as an economic entity "you have to pay your contribution and you have to have free movement of labour".
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