§ Mr. Marlow
asked the Prime Minister whether she will make it her policy not to agree to any settlement of the European budget dispute unless (a) the interpretation of every detail of any formula is clearly agreed by every participant, (b) the formula itself would cope with (i) any overruns in expenditure and (ii) the way in which any rebate would be payable and (c) rebates should not be dependent on the European Assembly.
§ The Prime Minister
I have set out our essential requirements on a number of occasions, We have now achieved agreement within the Community that there should be a lasting solution to the problem of budget imbalances, which would be implemented on the revenue side of the budget and which would ensure that a member state contributed no more than its fair share to the Community budget in any circumstances. This arrangement would not be subject to approval every year by the European Parliament. Agreement has still to be reached on the figures. When it is, the Community will have to agree detailed texts. The formula must also be able to cope with any threatened cost overruns. We, and other member states, and national Parliaments would need to be satisfied on all aspects of any package before it could be implemented.