Chirac: UK's £3bn EU rebate is 'unjustified'

French President Jacques Chirac unleashed a fresh attack on Britain today as he declared that the country's £3 billion a year EU rebate was "unjustified".

The French leader also made a barbed jibe at former premier Margaret Thatcher, who negotiated the rebate, calling her "Mr Thatcher".

His remarks came as the EU summit in Brussels broke up today with Foreign Secretary Jack Straw warning he would use Britain's veto to defend the cash-back deal. European Commission President Jose Manuel Barroso has already hinted he wants the rebate to end. The issue will dominate the next EU summit in July.

But Mr Chirac went further today, complaining about the fundamental injustice of the system. He told reporters: "One can only have a reasonable budgetary balance if we put back on the table the British cheque. It can no longer be justified."