‘Group of Three’ wants lower budget contributions

By Anna McLauchlin

Date: 03/03/05

The group of six countries that have demanded an EU budget cap of 1% of gross national income (GNI) has divided.

The Netherlands, Sweden and Germany have now split from France, Austria and the UK into a group of three that is fighting for a reduction in its national contributions to the budget.

In a non-paper submitted two weeks ago (14 February) to the other member states, the three countries argue that they have contributed most to the EU's coffers despite not being the richest member states.

In 2003, the Netherlands, Sweden and Germany were in 5th, 8th and 11th positions respectively in terms of GNI per capita but had the highest negative net contributor position.

And they claim this "unacceptable" situation will continue if the Commission's proposal on a general correction mechanism is not adopted. Under this, all net contributors will receive some money back from Brussels

The three have drawn up a table detailing how much would be returned to the net contributors under the Commission's proposal.

This shows a range of between 0.04-0.06% of GNI for a group of countries including the three, which they say is "relatively small".

"The excessiveness vis à vis other countries of similar wealth is no longer acceptable," the paper reads. It calls for a "fair distribution of financial burdens across the EU".

Though it does not spell it out in black and white, "fair" distribution can only mean scrapping the UK's rebate and giving more back to the net contributors under the general correction mechanism proposal.

"For Germany, Sweden and the Netherlands, there can be no deal on expenditure without an adequate solution on the system of own resources," it says.

See Special Report section for more on the EU's financial perspectives

Article reports that the group of six countries that demanded an EU budget cap of 1% of gross national income (GNI) has divided. The Netherlands, Sweden and Germany have split from France, Austria and the UK into a group of three that is fighting for a reduction in national contributions to the budget. In 2003, the Netherlands, Sweden and Germany were in 5th, 8th and 11th position respectively in terms of GNI per capita but had the highest negative net contributor position.