Crack down on Commission pay or we’ll veto EU budget, warns David Cameron

PRIME Minister David Cameron has threatened to veto the next European Union budget unless there is a crackdown on high pay in the European Commission.

His threat came at an EU summit in Brussels as European leaders agreed to start a banking union of eurozone countries at the beginning of next year to tackle the currency’s ongoing crisis.

The row over the EU budget was one of several around the table, with German chancellor Angela Merkel and Irish taoiseach Enda Kenny falling out over an attempt to recapitalise Ireland’s bailout loan of €64bn (£52bn).

The summit was held as unions in Spain called for a general strike to oppose austerity measures its government is being forced to impose to avoid economic collapse.

There was good news for beleaguered eurozone leaders, with Latvia committing itself to join the currency.

However, with European countries struggling to pay their debts, Mr Cameron insisted that the EU’s budget now needs to be trimmed.

The Prime Minister said 16 per cent of European Commission staff were paid more than €100,000 and the “central administration” needed to be curbed.

The comments came as leaders wrapped up another summit dominated by efforts to resolve the eurozone crisis.

Britain and Germany have also been arguing for a real-terms freeze in EU budgets for the next seven years, which are due to be set next month.

Speaking at a press conference, Mr Cameron insisted he was ready to veto any “unacceptable” proposals.

“I think it would be good to have a deal, it is good to settle these issues,” he said.

“But it just would not be acceptable to see a huge increase in EU spending at a time when other budgets are being cut.

“The British public expect a tough approach and rigorous approach and that is exactly what they will get.

“If we cannot get a deal, you know, there’s no point doing a deal that is a bad deal. We cannot have European spending going up and up and up when we are having to make difficult decisions.”

French president Francois Hollande said that Europe is going at different speeds and that banking union means there should be a “council of the eurozone” separate to the general EU one including Britain.

Mrs Merkel said that “quality takes precedence over speed” in setting up banking union.