IN THE TIME IT TAKES TO READ THIS TITLE THE EUROPEAN UNION
WILL HAVE SPENT
£4,400 OF BRITISH
TAXPAYERS’ MONEY
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Reforming taxes, cutting spending and protecting taxpayers
EU FISCAL FACTBOOK The TaxPayers’ Alliance 55 Tufton Street, London SW1P 3QL 0845 330 9554 07795 084 113 (24 hour media enquiries) info@taxpayersalliance.com taxpayersalliance the_tpa www.taxpayersalliance.com © 2013 Produced by the TaxPayers’ Alliance, October 2013 Designed by www.nichecreativeservices.com
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Britain’s contribution to the EU gets bigger every year. That means bigger tax bills for families across the country and too much of the money is wasted. Brussels also makes life difficult for British businesses with draconian regulations. We deserve a better deal. This EU Fiscal Factbook provides a clear overview of the big picture: How much cash do we hand over every year? Where does it go? How bad is the situation in the Eurozone? Full references can be found at the back of the guide. The TPA will play a crucial role in the EU debate over the coming years so I hope you consider joining our growing grassroots army. Voters want clear facts as we move towards an EU Referendum, and this booklet will answer their questions.
Matthew Elliott Founder, TaxPayers’ Alliance Chief Executive, Business for Britain
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Cost of the EU
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UK gross and net contributions € MILLION, 2011
Gross contributions
Net contributions
13,825
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7,255
Receipts
6,570
SOURCE: EUROPEAN COMMISSION 3
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EU gross contributions € MILLION, 2011 GERMANY FRANCE ITALY UK SPAIN NETHERLANDS BELGIUM POLAND SWEDEN AUSTRIA DENMARK FINLAND GREECE PORTUGAL CZECH REPUBLIC IRELAND ROMANIA HUNGARY SLOVAKIA SLOVENIA BULGARIA LITHUANIA LUXEMBOURG CYPRUS LATVIA ESTONIA MALTA 0
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5,000
10,000
15,000
20,000
25,000
SOURCE: EUROPEAN COMMISSION 4
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EU net contributions € MILLION, 2011 GERMANY UK ITALY FRANCE NETHERLANDS SWEDEN DENMARK AUSTRIA FINLAND CYPRUS MALTA IRELAND ESTONIA SLOVENIA BULGARIA LATVIA SLOVAKIA LUXEMBOURG CZECH REPUBLIC LITHUANIA ROMANIA BELGIUM SPAIN PORTUGAL HUNGARY GREECE POLAND -10,000
-5,000
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0
5,000
10,000
SOURCE: EUROPEAN COMMISSION 5
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How the EU spends your money
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EU Budget £ BILLION, 2013
Aid and accession Administration
£6.3 bn
Redistribution to poorer countries
£8.4 bn
£47.2 bn
Rural development and fisheries
£11.9 bn
Total £132.8 bn £44 bn
£11.9 bn
Common Agricultural Policy
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£1.5 bn
R&D, sustainable energy, training
Citizenship, freedom, security and justice SOURCE: EUROPEAN COMMISSION 7
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Examples of EU waste £15 million on the EU Parliamentarium £265,000 on cocktail parties in just one year
£17,500 on luxury gifts including Tiffany jewellery
£160,000 on a fitness centre for dogs
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that still hasn’t opened
SOURCES: VARIOUS 8
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Spending on advertising 2008
€2.4 billion
€2.13 billion
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SOURCES: OPEN EUROPE, COCA COLA 9
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Taxpayer-funded politics % OF ORGANISATION’S BUDGETS PAID FOR FROM EU FUNDING, 2011 EU GRANT OF
EU GRANT OF
€ 1,195,259 European Environmental Bureau
Friends of the Earth Europe
EU GRANT OF
CEE Bankwatch Network
EU GRANT OF
€ 362,992
Health and Environment Alliance
EU GRANT OF
€332,163
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EU GRANT OF
€365,735
Naturefriends
Birdlife Europe
€ 836,238
EU GRANT OF
€599,594
WWF European Policy Office
EU GRANT OF
€ 894,000
EU GRANT OF
€295,022
Climate Action Network Europe
€ 275,516
European Federation for Transport and Environment SOURCE: INSTITUTE OF ECONOMIC AFFAIRS 10
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Cost of travelling to Strasbourg 2011
Travelling between the two seats of the EU parliament in Brussels and Strasbourg costs an estimated
£150 million a year here...
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..to here
SOURCE: BRUSSELS-STRASBOURG SEAT STUDY GROUP 11
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Embassies The EU has 140 embassies around the world, with
44 diplomats in Barbados
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SOURCE: SPECTATOR 12
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The cost of EU regulation
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The cost of EU regulation Since 1998, regulation introduced in the UK has cost the economy £176 billion
£124 billion or 71% had its origin in the EU Of this
£5,000
Equivalent to for every household in the UK
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SOURCE: OPEN EUROPE 14
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The cost of the CAP and CFP ANNUAL COST, UK
COMMON AGRICULTURAL POLICY
£10.3 billion
COMMON FISHERIES POLICY
£2.81 billion
£584
Equivalent to for every household in the UK
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SOURCE: TPA 15
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Seven figure CAP subsidies to UK landowners 2011
889 landowners received more than
£250,000
Of those, 133 were given more than and
£500,000
47 of those were given more than
£1 million in subsidy
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SOURCE: BBC 16
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CFP discards ANNUAL COST
Economic value of UK dumped fish
£130 million
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SOURCE: TPA 17
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The cost of the ETS Just three years after it was launched the Emissions Trading Scheme cost consumers across Europe as much as
â‚Ź93 billion
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SOURCE: TPA 18
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Annual cost of labour regulations Working Time Directive
£2.6 billion Temporary Agency Workers Directive
£2 billion
Halving the cost of regulations like these could boost UK GDP by £4.3 billion and create 60,000 new jobs
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SOURCE: OPEN EUROPE 19
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The EU as a trading partner
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20%
22%
24%
26%
28%
30%
32%
34%
36%
% OF WORLD GDP
90 91 92 93 94 95 96 97 98 99 00 01 02 3 4 5 6 7 8 9 0 1 2 19 19 19 19 19 19 19 19 19 19 20 20 20 200 200 200 200 200 200 200 201 201 201 SOURCE: WORLD BANK
EU / WORLD GDP, % LINEAR TREND (EU / WORLD GDP, %)
EU vs World GDP
Exports to the EU EXPORTS TO EU COUNTRIES AS A SHARE OF TOTAL GOODS EXPORTS, 2012 (%) MALTA GREECE CYPRUS UNITED KINGDOM FINLAND SWEDEN ITALY IRELAND GERMANY ESTONIA DENMARK LITHUANIA FRANCE BULGARIA SPAIN AUSTRIA SLOVENIA ROMANIA LATVIA BELGIUM PORTUGAL NETHERLANDS HUNGARY POLAND LUXEMBOURG CZECH REPUBLIC SLOVAKIA
0
10
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20
30
40
50 22
60
70
80
90 SOURCE: WTO
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Tariffs on imports to the EU EU TARIFFS, SELECTED EXAMPLES
on honey...
...wellington boots...
...bicycles... ...marmalade...
Poverty re-enforcing tariffs The EU imposes a 1% tariff on raw cocoa but 30% on chocolate, discouraging processing in Africa and exacerbating poverty
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SOURCE: WTO 23
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Free Trade Agreements PROPORTION OF GROSS WORLD PRODUCT COVERED BY FTAs
EU 30% 70%
FREE TRADE NOT FREE TRADE
SWITZERLAND 33%
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67%
SOURCES: UN 24
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The state of the EU economy
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State spending as a proportion of GDP % GDP, 2012 50
40
30
20
10
0
EU average China
EU average 46.5% China 23.6%
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SOURCE: EUROSTAT, HERITAGE 26
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Debts and deficits 2012 GENERAL GOVERNMENT DEBT, % GDP 0
20
40
60
80
100
120
140
160
Greece Italy Portugal Ireland Belgium France United Kingdom Cyprus European Union (27 countries) Spain Germany Hungary Austria Malta Netherlands Poland Slovenia Finland Slovakia Czech Republic Denmark Latvia Lithuania Sweden Romania Luxembourg Bulgaria Estonia
-2
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0
2
4
NET BORROWING, % GDP 27
6
8
10
12
SOURCE: EUROSTAT
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Youth unemployment YOUTH UNEMPLOYMENT, SELECTED COUNTRIES 60
50
40
30
20
Ireland Greece Spain Italy Portugal UK
10
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2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0 SOURCE: EUROSTAT 28
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For further details and a full list of sources, please visit www.taxpayersalliance.com/eu-fiscal-factbook or use the QR code above
You can sign up to support the TPA for free by visiting www.taxpayersalliance.com/sign-up Financial support for the EU Fiscal Factbook was provided by the Politics and Economics Research Trust (charity number 1121849)
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Reforming taxes, cutting spending and protecting taxpayers
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