Thread: EU Budget
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Old 01-11-2012, 08:33   #4
Chris
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Re: EU Budget

Quote:
Originally Posted by Damien View Post
Yeah it's stupid. I did wonder how the Tory front bench lost the vote, can't believe Labour are on the side of the Euro-sceptics!
They're not on the side of the Euro sceptics - they're simply trying to make themselves look like they're on the side of budget-squeezed families. It's for domestic consumption. It might come back to bite them on the bum when they're invited to either support or to vote down whatever deal Cameron eventually comes back with though. That vote will be binding, which will make it a lot harder for them to indulge in politicking.

Meanwhile, if Cameron has any wits at all, he will use this vote to harden his negotiating position. At present his starting point (a real terms freeze) is too weak. Unless he's prepared to give absolutely no ground whatsoever, he is bound to have to shift even a little, which will result in an above-inflation increase in the EU budget. If he goes in demanding a cut, then a freeze becomes his (slightly) more reasonable compromise offer.
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