Publication

This paper analyzes the UK rebate on EU contributions and states that it creates adverse effects which greatly reduce the incentive for the UK to play an active role in the development of EU policies. This may explain the UK's traditional semi-detached relationship with the EU. The paper concludes, however, that that there is a strong case for the continuation of a modified system of rebates for countries in the UK's position. The paper puts forward proposals for a modified system of rebates that would overcome the disadvantages of the present system.