Cameron faces damaging rebellion over European budget

LONDON (Reuters) - Prime Minister David Cameron faces revolt in parliament on Wednesday by Conservatives demanding that he push for a cut in the European Union budget, feeding divisions on an issue that has tormented his party for decades.

The result of a pending parliamentary vote on the issue will be non-binding, but defeat would damage Cameron by exposing Conservative rifts over Europe and further eroding his authority after months of missteps by his coalition government.

Many Britons regard the EU as an incompetent, spendthrift source of bureaucracy. Britain's ties with the 27-member bloc are likely to be a big theme in a national election due in 2015.

Cameron wants the EU's long-term budget to rise only in line with inflation, while Conservative rebels say it should be cut in real terms to reflect the bleak economic landscape at home and across Europe.

"This government is taking the toughest line in these budget negotiations of any government since we joined the European Union," he told parliament. "At best we would like it cut, at worst frozen, and I'm quite prepared to use the veto if we don't get a deal that's good for Britain."

France also threatened on Wednesday to use its veto at the European budget talks in Brussels next month if the proposals imply cuts in farm spending.

The UK vote, due to be held in the Commons later on Wednesday, is likely to be a close call for Cameron, whose government has a working majority of 86.

The main opposition Labour Party will back the Conservative rebels, who claim support of at least 40 of the party's 304 MPs.

INFIGHTING

In a bad-tempered clash in parliament, Labour leader Ed Miliband compared Cameron to John Major, the former Conservative prime minister whose time in office in the 1990s was dogged by infighting over Europe.

"He can't convince European leaders, he can't even convince his own backbenchers (members of parliament)," Miliband said. "He is weak abroad, he is weak at home."

Cameron wants Britain to remain an EU member but to renegotiate its role within the bloc, focusing more on trade links and less on areas like regulation.

Trailing in popularity polls, Cameron faces an uncomfortable balancing act on Europe.

He doesn't want to alienate a majority of voters - and a powerful Conservative minority - who mistrust Europe and would probably vote to leave the EU after nearly 40 years.

The Conservative leader must also see off a threat from the fiercely anti-EU UK Independence Party, which polls suggest has around 10 percent of the vote, about the same as the pro-Europe Lib Dems, the junior coalition partner.

However, Cameron must also keep the Lib Dems on side and avoid wrecking relations with the EU, Britain's biggest trading partner, as the country emerges from a recession.

Cameron accused Labour of "rank opportunism" because they approved EU budget increases and the return of part of Britain's annual rebate from Europe while the centre-left party was in power between 1997 and 2010.

Cameron has been on the back foot after the resignation earlier this month of a senior minister who swore at police guarding his Downing Street office, and a series of mishaps and U-turns since an unpopular budget was presented in March.

(Additional reporting by Mohammed Abbas; Editing by Guy Faulconbridge and Mark Heinrich)

Source: http://news.yahoo.com/cameron-faces-damaging-rebellion-over-european-budget-123344743--business.html

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