What a let down!

Prime Minister Blair, in foolishly believing that he had made an agreement with the EU that costs and especially agricultural subsidies would be reduced, agreed to a cut in our EU rebate, won by Margaret Thatcher in 1984.

Now we know differently. Our net payment to the EU will rise from £4.1 billion to £6.9 billion by 2011, as the agreement kicks in. In the calendar year 2011 it will rise again to £7.3 billion, or about £289 per UK household.The problem is that the "full and wide-ranging review" of EU spending is being abandoned. The reason given is that officials fear that it would be too contentious and would disrupt other work which they regard as more important.

So the planned November "comprehensive reassessment" of European finances, which would permit a "progressive percentage reduction" in the UK's rebate over the next four years, will not take place. The reduction in the rebate will, however, continue.

Why am I not surprised?

We are in a recession admittedly, but if other countries would struggle with any reduction in benefit from the EU, why are we not to be accorded the same concern by cancelling our increased contribution?

The French, fiercely resisting any reduction in the largess they receive under the CAP, have already managed to put back revision until 2013. It is almost possible to admire the way they have avoided serious revision for at least 30 years, and who would bet against them somehow managing to avoid it even longer?

When it comes to EU bargaining, those who claim that they have put us at the centre of Europe have shown themselves poor at bargaining.