BUDGET: UNITED KINGDOM ONCE AGAIN A NET CONTRIBUTOR.

The UK was once again a net contributor to the EU Budget last year, according to the latest report from the European Commission on the Allocation of EU Operating Expenditure by Member State. Britain's net contribution totalled 0.17% of its Gross National Income in 2002, whilst in 2001 it was a net beneficiary, to the tune of 0.05% of its GNI (see European Report 2714), despite the budget rebate which it has enjoyed since 1985. France which pays almost double the UKs contribution in terms of equivalent GNI, especially because it bears an additional part of the UKs budget rebate from which Germany, the Netherlands, Sweden and Austria have been exempt has seen its net contribution total 0.14% of GNI, thanks in particular to the CAP, of which it receives 22.5% of the total.

Spain remains the main beneficiary of the EU Budget in terms of volume, with Euro 8.8 billion, or 1.29% of its GNI, whilst Greece is the main beneficiary in nominal terms, with 2.29% of its GNI. Budget Commissioner Michaele Schreyer refused to enter into the argument begun by Chancellor Gerhard Schroder, who, reacting to hardly more friendly remarks by his Spanish counterpart Jose Maria Aznar about the deficit and low growth in Germany...