"
existing members had finally agreed this system among themselves early if 1970 only after considerable difficulty and regarded it as an essential part of the process of completing the Community envisaged in The Hague Communiqué. (The system is described in Annex A.) The negotiations have therefore been directed to finding a method to enable us gradually to adapt to the Community system over a period of years, without placing an undue burden on our economy.
or
66
92. The solution which has been reached is as follows. A percentage key" has been set, broadly corresponding to our present share of the total gross national product (GNP) of the 10 countries likely to form the enlarged Community. This will represent the proportion of the budget which we should nominally be expected to pay in the first year of membership. This key will then increase marginally in each of the four subsequent years, under similar arrangements to those agreed by the Six for themselves (see paragraph 5 of Annex A).
93. However, we shall pay only a proportion of our nominal contribution over these first five years. The proportion will increase in annual steps. The effect of these arrangements is shown in the table below. Column 2 sets out the nominal key which has been agreed. Column 3 shows the proportion of this nominal key which we shall in practice be required to pay. Column 4 gives our resulting share of the Community budget in each year. Column 5 sets out the possible size of our gross contributions on the assumption that the budget amounts to £1,400 million in 1973 and rises to £1,600 by 1977. Column 6 shows the estimated build-up of our receipts from the budget, and the resulting estimates of our net payments are shown in the final Column.
TABLE 2
(1)
(2)
(3)
(4)
(5)
(6)
(7)
United Kingdom
United Kingdom
Possible United
Possible
Possible
United
United
key
Year
(percentage of Community
Percentage of key to
contribution
(percentage of
Kingdom gross
Kingdom
Kingdom
receipts
be paid
Community contribution
net contribution
budget)
budget)
(£m.)
(£m.)
(£m.)
1973
19.19
45.0
8.64
120
20
100
1974
19.38
56.0
10.85
155
40
115
1975
19.77
67.5
13.34
195
55
140
1976
20.16
79.5
16.03
245
75
170
1977
20.56
92.0
18.92
300
100
200
It will be seen that we should be required to pay 8.64 per cent of the budget of the enlarged Community in the first year, rising to 18.92 per cent in the fifth year-the latter being broadly comparable to our proportion of the gross national product of the enlarged Community.
94. After the first five years there will be a further period of two years during which the size of our contribution will continue to be limited as follows. The Commission will calculate what our contribution to the budget would have been in 1977 if we had been required in that year to apply the direct income system in full (see Annex A, paragraphs 3 and 4).
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