David Cameron must focus on Britain’s interests, not on those of Eurosceptics

This Brussels meeting is real test for Tory ministers: they must secure a coalition of countries and a fairer deal for Britain

UK ‘should consider taking EU to court over £1.7bn bill’

David Cameron in Brussels
'David Cameron’s bluster in Brussels last week appears to have made it harder for the UK to negotiate a better deal.' Photograph: Yves Logghe/AP

Tomorrow’s meeting of EU ministers is a key test for this government. For too long when it comes to Europe, David Cameron has put party before country. This time, the cost of failure is billions of pounds and so in this week’s negotiations, they have to put Britain first for a change.

This backdated bill from Brussels is clearly unacceptable, and was presented in an unacceptable way. But the UK government is guilty of having already made a difficult situation even worse. George Osborne and the Treasury have been asleep on the job. The Treasury has known for months about the statistical revisions to GDP figures that prompted this bill. And the Treasury knew about the size of the bill for a full week before the chancellor told the prime minister.

David Cameron’s bluster in Brussels last week appears to have made it harder for the UK to negotiate a better deal. So as ministers meet in Brussels to find a way forward, the government must now make up for lost ground by setting four achievable objectives for this crucial meeting.

First, the priority must be to ensure a much better and fairer deal for British taxpayers by securing a coalition of countries. David Cameron wants people to believe that his isolation in Europe is a result of Britain being outnumbered when it matters most. When he tried to veto the fiscal compact in 2011, and when he tried to block Jean-Claude Junker’s appointment as commission president earlier this year, he sought to justify his failure by claiming that no one else in Europe understood Britain’s interests.

Once again, he is already getting his excuses in early when he tries to claim that the EU surcharge is a fight of one against 27. But nine countries are being asked for backdated payments, including Italy – which currently holds the EU presidency – the Netherlands and Greece, which all have a shared interest in backing Britain’s case.

So while it might suit the prime minister to paint Britain as the lonely man of Europe, the truth is that on this issue, as with others, clearly there are allies to Britain’s cause.

But the prime minister needs to build a coherent case in order to maintain a credible alliance, and he needs to move fast. The Dutch finance minister appears to have softened his government’s stance, and the Irish taoiseach, Enda Kenny, said his government will pay the additional bill. This meeting comes at a crucial point in the negotiations and must be used to secure the coalition that is clearly there to be built.

Second, the prime minister will have to work to repair relations with Germany, whose backing will be crucial to Britain securing a better deal. Although Germany is due to receive money back following this recalculation, Angela Merkel has in the past proved herself to be a champion of common sense when it comes to the often bureaucratic approach the commission takes.

But in recent weeks UK-German relations have soured following David Cameron’s increasingly desperate rhetoric in the run-up to the Rochester byelection. Indeed, the comments this week from a German government spokesperson reveal that David Cameron is both losing influence and losing allies in Europe.

Third, while building a political case, the government should also be preparing a legal one. This week a Treasury minister admitted that the European court of auditors has already questioned whether figures were properly examined by the commission. No wonder there is mounting speculation about the legal basis for what has happened.

Specifically, the prime minister should be clear about whether he intends to take the EU commission to the European court of justice if they insist on the deadline of 1 December. If there is a legal case, there is no reason why Britain shouldn’t consider this.

Fourth, confusion at the top of government about what interest charges the UK may be liable for if the December deadline is not met must be cleared up. As things stand, Britain could face a further fine of up to £114,000 a day, and if we paid nothing for a year the bill would stand at £1m a week.

So while the details of the UK’s backdated bill are looked into, the government should push in Brussels for a new agreement, not just over the total amount payable, but also how that interest is calculated.

Conservative backbenchers seem to see this latest dispute with the commission as just another episode of their obsession with Europe. But the truth is it marks a real test for David Cameron and George Osborne. In recent months, they seem to have given up making the case for Britain’s place in Europe. But with an impending bill and a deadline fast approaching, we cannot afford this approach.

So in Brussels this week, ministers need to start securing a much better deal for Britain. That means the government must have all eyes on the detail of the deal being discussed, not looking back over their shoulders at the Eurosceptic backbenchers who still seem to be pulling the strings.