Labour calls for EU budget cut
Ed Balls and Douglas Alexander demand European Union reduce spending to below inflation ahead of Commons debate
Labour has called for a real-terms cut in the EU's budget . The move will be seen as an attempt to seize the initiative on Europe from David Cameron,
who is fighting the 5% rise in the EU's long-term budgets requested by
the European Commission, but has accepted that it should rise in line
with inflation - currently just over 2%.
Shadow chancellor Ed Balls and shadow foreign secretary Douglas Alexander
used an article in the Times to say that, like the governments of its
27 member states, the EU should accept that it must cut spending in the
current austere economic conditions.
But they said that Cameron
was "ill-equipped" to secure the reduction in spending because he has
alienated European partners through his approach to the EU, including
the use of the UK's veto to block a treaty on measures to rescue the
eurozone.
Their call for any budget increase to be kept below
inflation comes in advance of a debate on Wednesday in the House of
Commons on the government's negotiating stance at next month's EU
summit, which is expected to fix the spending perspective for the
seven-year period 2014-20.
In their article, Balls and Alexander
said: "Every country across Europe, including Britain, is having to make
difficult decisions about spending - trying to do better with less. And
the European Union is not - and should not be - exempt from this challenge.
"The
crisis in the eurozone and a chronic lack of growth across the
continent mean that EU resources are stretched and priorities must be
revised. The challenge for the EU, as for national governments, is to
cut spending in a way that is both fair and supports rather than stifles
jobs and growth.
"That is why the priority for the new seven-year budget must be to promote growth and jobs across Europe.
"And
that is why Labour will argue against the proposed increase in EU
spending and instead support a real-terms cut in the budget. We believe
these goals are difficult but achievable with the right leadership and
the right approach from the UK."
Balls andAlexander called for
savings from the Common Agricultural Policy and from more effective use
of the EU's structural funds to support disadvantaged areas of the
continent. They said that an independent EU auditor should be appointed
to review every aspect of spending for its impact on promoting growth in
member states. They also called for the creation of a position of
Growth Commissioner to lead efforts to boost the ailing economies of the
EU.
Balls and Alexander insisted that Britain's rebate continued
to be justified and should not be negotiated away. But they said that
Cameron was not a position to deliver the best outcomes for the UK.
"The
real tragedy for Britain is that at the very time when our leadership
is most needed, the UK's influence has rarely been so marginalised,"
said the Labour pair.