EU Budget: PM Defiant Over Planned Increase

David Cameron has attacked a "ludicrous" rise in the European Union budget ahead of showdown talks with Angela Merkel.

The Prime Minister will meet the German Chancellor at Downing Street - less than three weeks before a crunch summit to determine the next long-term spending plans for Brussels, and after suffering a backbench rebellion in the Commons over Europe.

Mr Cameron, who wants to stay in the EU, backs a real-terms budget freeze - a view shared by Mrs Merkel.

She was among European leaders to sign a letter in 2010 backing a real-terms freeze.

The PM said the arguments were now "even more powerful" for greater EU spending controls.

The Prime Minister is due to head to Brussels for EU budget negotiations

He vowed to demand "with vigour" that Mrs Merkel "stick to" her promise to freeze the budget and said British taxpayers should not have to foot the bill for the problems of the eurozone.

Speaking ahead of the talks during a Middle East trade tour, Mr Cameron said he was looking forward to "frank" discussions with Mrs Merkel.

"I understand the difficulties of the euro but the European Union budget is for all 27 members of the EU and we shouldn't be using the European Union budget to make up for difficulties and problems in the eurozone," he said.

"If the eurozone wants to have its own budget, it should have its own budget. And if they want to have fiscal transfers they can have fiscal transfers, if they want to channel more money to euro members that have difficulties, they can channel more money to euro members that have difficulties. But they shouldn't be using the European Union budget as a proxy for that."

MPs await the EU budget vote result in the House of Commons

On the pending EU summit, the PM said he would make "very robust and strong arguments" for a deal in Britain's interests, but added it was unrealistic to expect to get agreement.

He said: "They are proposing a completely ludicrous 100bn euro (£80bn)increase in the European budget.

"I'll be arguing for a very tough outcome. I never had very high hopes for a November agreement because you have got 27 different people round the table with 27 different opinions."

He continued: "I have always wanted at best a cut, at worst a freeze.

"I feel I am in there fighting for Europe's taxpayers, particularly British taxpayers.

"We have a rebate, we are keeping that rebate. But over and above that rebate I also want to see a good budget outcome for the UK."

Last week Mr Cameron suffered a humiliating Commons defeat when Tory eurosceptic rebels joined forces with Labour to back a non-binding motion demanding a cut to the EU budget.

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