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11/3/14

EU: UK faces punitive interest charges if Cameron ignores Euro 2.17bn EU bill - by Nicholas Watt and Ian Traynor

David Cameron’s refusal to pay a European budget surcharge of  euro 2.17bn by the end of the month will incur punitive extra costs, with interest charged instantly on a rising monthly scale, the new European commission warned on Monday on its first working day in office.

Margaritis Schinas, spokesman for the new commission chief, Jean-Claude Juncker, said the monies would have to be paid by 1 December, although political efforts were under way to reach a deal.
The deadline was binding, Schinas said. “Everybody has to pay what is due.”

The new EU budget spokesman, Jakub Adamowicz, said an interest rate of 2.5% would be applied to the outstanding debt from 1 December, rising by a quarter of a percentage point each month.

George Osborne will lead the charge against the levy at a meeting of EU finance ministers in Brussels on Friday, two weeks after the budget payments dispute erupted at a Brussels summit. As senior diplomats and officials in Brussels insisted on Monday that intensive efforts were under way to strike a deal, the chancellor issued a blunt warning that the EU was not working for Britain.

 Read more: UK faces punitive interest charges if Cameron ignores £1.7bn EU bill | World news | The Guardian

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