EU migrant deal will cost UK dear

DAVID Cameron has been warned that he will have to agree to large increases in the European Union budget in return for limiting the number of migrants who can move to Britain.

European Commission officials are drawing up plans to allow the Prime Minister to stop citizens of new member states being able to work in the UK for up to 20 years as part of his EU renegotiation.

But in exchange he will be forced to agree to the scrapping of an agreement to reduce the EU budget – meaning Britain may have to fork out billions of pounds in extra contributions.

One of Mr Cameron’s proudest achievements in Brussels has been the February 2013 pact, which lowered the EU budget for 2014-2020 by about three per cent compared to the previous seven-year period.

However, he has now been told he will have to sacrifice the hard-fought deal if he is to get concessions on migration. Countries including Germany are expected to put pressure on the Prime Minister to allow them to unpick the budget agreement next year.

A source close to commission president Jean-Claude Juncker said the £673billion budget limit could be raised by up to £14billion to help pay for the migration crisis. Britain has a national veto to block any such change but, as part of the renegotiation deal, Mr Cameron would agree not to use it.

However, a British government spokesman described the suggestion as ‘baseless speculation’. ‘The UK has been clear on the changes needed on migration and welfare, and the PM’s multi-year EU deal which achieved the first real terms cut to the overall seven-year budget, it not up for grabs,’ said the spokesman.

Mr Cameron will set out his demands for EU reform in the next fortnight. The European Commission has been working on possible solutions and is said to be considering a ‘transition clause’ to stop people from potential future members from being able to work in other EU countries as soon as they join.

Current restrictions stop them being able to move elsewhere in the EU for seven years, but this could be increased to up to 20 years.

The commission is also looking at clarifying its core principle of ‘ever closer union’ so Britain has a clear exemption from any further political integration.

MEPs last week voted to increase the EU budget by nearly £3billion but it remains within limits agreed by leaders two years ago.