Giving up the rebate would mean better relations with the Europe Union  It is worth giving up the rebate to remove a constant source of tension and ill-feeling between Britain and its European partners. Until the rebate is abandoned, Britain will never be at the heart of Europe. This limits our ability to promote our other interests in Europe, as every argument always ends up back at the rebate, and weakens our moral authority. Denmark for example is similarly Euro sceptic but is fiercely opposed to the UK rebate and aims to scrap it during Denmark’s next EU Presidency in 2012. [1] Because preserving the rebate has always been the Prime Minister’s priority, every other British goal has been given up instead. This led to bad deals for Britain over the ERM, at Maastricht, and in 2002 when Tony Blair accepted a Franco-German agreement to leave the CAP unreformed until 2013. This is because Britain is inevitably on its own in any possible change to the rebate whereas on almost any other issue Britain has allies. So when Britain’s opponents can link the rebate to an issue Britain may be able to keep the rebate but will in other respects be on the losing side. [2]  [1] Jensen, Arne Nis, ‘The UK rebate – or rethinking the EU budget?’, 2011, p.27  [2] Rennie, David, and Helm, Toby, ‘Blair is all alone in Britain’s EU rebate row’, 2005