Jay's Journal

EU 1 Cameron/Osborne 0

Posted on: November 8, 2014

Osbourne the idiot…

alittleecon

George Osborne went to Brussels today to try to negotiate a ‘better deal for Britain’ with regards to the £1.7bn the EU has said the UK owes due to statistical revisions over the last 20 years. Osborne came out of his meeting triumphant, saying he had negotiated a reduction of 50% which would be interest free, with payments staggered over 2 years.

It took about half  an hour for Osborne’s claims to unravel after a number of his counterparts in other EU countries revealed that the £1.7bn bill was in fact unchanged, but that the UK’s ‘rebate’ had also been revised, and would total £850m, and that this was always the case. Originally then, the UK would have paid £1.7bn, and then receive a rebate of £850m. Now, after George Osborne’s shrewd negotiating, we will pay £850m and forego the rebate. Still sound like a good deal?

I had wondered…

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