UK: The British government last night signalled that it would resist moves to end its £2 billion (€3 billion) annual rebate from Brussels.
The Prime Minister's official spokesman insisted that the government still regarded the rebate, won 20 years ago by Mrs Margaret Thatcher, as "fully justifiable".
He said that Britain would be able to veto any attempt to end the rebate as the decision would require unanimity within the EU.
The intervention by No 10 followed reports that the EU Budget Commissioner, Ms Michaele Schreyer, wanted to divide up the rebate among all the net contributor nations to the European Union.
"Our position has not changed," the spokesman said.
"We recognise that, in relative terms to most other EU countries, we have become more prosperous over the past decade, but we still believe the rebate is justified because of the distortions in programmes such as the Common Agricultural Policy."
The spokesman said the government had yet to see any formal proposals from the Commission and decisions on the EU budget would not have to be finalised for another 18 months.
Nevertheless, a concerted attempt by Brussels to end the rebate could pose a severe political problem for the Prime Minister, Mr Tony Blair, who already faces a tough fight to win the promised referendum on the new EU constitution.