Characteristic position of the United Kingdom of Great Britain and Northern Ireland in the European Union illustated on the event of British rebate

This thesis deals with the problem of British attitude towards European integration. The relationship between the United Kingdom and the European Union is described via the existence of a phenomenon of British European budget rebate. The budget rebate is a British reduction in price of the cost of contribution annually sent to the common European Union's budget. It was won by the Prime Minister Margaret Thatcher in Fontainebleau Summit in 1984. The main reason for giving Great Britain this privilege was the fact that the UK was one of the biggest net contributor to the budget. On the other hand, the UK received too little from the budget because it had only a small agricultural sector. The European budget was aimed primarily for subsidising the European farmers. The UK's annual VAT-based contribution to the European budget is reduced according to a formula first set out in the Fontainebleau Agreement. This reduction is equal to 66 % of the difference between what the UK pay for the EC budget and the receipts, which the UK gets back. But, the rebate applies only as for spending within the EU and the British contribution is calculated as if the budget were financed only by VAT. The European Commission is responsible for determining and calculating the amount of the UK's abatement. It is generally calculated..