Britain's Cameron faces revolt on EU budget

(LONDON) - British Prime Minister David Cameron faced a tense parliamentary vote on Wednesday as rebels in his Conservative party ganged up with the Labour opposition to push for a cut in the EU budget.

Cameron tried to head off their calls by threatening to veto any above-inflation increase of the bloc's trillion-euro 2014-20 budget when European Union leaders meet for a difficult summit in Brussels next month.

Wednesday's vote is non-binding, but a rebellion would emphasise a growing rift between Cameron and "eurosceptics" on the right of his party, at a time when he is battling low poll ratings.

Dozens of Conservative rebels are supporting a parliamentary motion urging Cameron to hold out for a cut in the EU budget in real terms to reflect austerity measures being enforced Britain and other EU countries.

They said they expected Cameron to come within single figures of defeat in the vote, though he is still likely to win with the support of Conservative loyalists and of the Liberal Democrats, the smaller party in the governing coalition.

Labour piled on the pressure when it said that it would vote with the rebels, insisting that it had consistently called for a cut in the budget.

The vote is expected at 1900 GMT, after a debate on the motion.

Cameron accused Labour leader Ed Miliband of "complete opportunism" and sought to rally Conservative loyalists when he answered questions in parliament on Wednesday.

"This government is taking the toughest line in these budget negotiations of any government since we joined the European Union," the prime minister said.

"At best we would like it cut, at worst frozen, and I'm quite prepared to use the veto if we don't get a deal which is good for Britain.

"But let's be clear, it is in our interest to try to get a deal because a seven-year freeze would keep our bills down compared to annual budgets."

Mark Reckless, one of the leading Conservative rebels, said he hoped the government would accept the parliamentary motion.

"Then David Cameron can go to Brussels, as (former Conservative prime minister) Margaret Thatcher went before him, as head of a united parliament to represent our interests in Brussels and to say when we are seeing such cuts at home there should be at least some reduction in the EU," he said.

He also called for a referendum on Britain's membership of the EU.

The revolt puts renewed pressure on Cameron after months of blunders and u-turns by the coalition government, which is halfway through its five-year term, and whisperings of a possible leadership challenge.

Europe has caused ructions in the Conservative party for decades but it is also likely to be an issue in the next general election, scheduled for 2015, amid growing scepticism among Britons generally about their country's EU membership.

Cameron warned European Council president Herman van Rompuy at talks in London on Thursday that non-euro Britain could not support a sharp increase in the EU budget.

The Commission wants a budget of 1.03 trillion euros ($1.33 trillion), up 5.0 percent on 2007-13, but the seven major contributor states have baulked at the increase at a time when they are having to cut spending at home.

It rejected on Tuesday a 50-billion-euro cut suggested by Cyprus, the current holder of the EU's rotating presidency.

But Germany and France have joined Britain in insisting that the EU cannot expect to get more when they have to make do with less, demanding cuts in the 2014-20 budget of 100 billion euros or more.

In December, Cameron dramatically famously parted ways with Brussels over the EU's fiscal compact, which laid down the lines for tighter EU fiscal policy coordination amid the eurozone crisis.