European Union Budget Commissioner Jacek Dominik warned British Prime Minister David Cameron on Monday that if the UK would refuse to pay the €2.1 billion (US$2.67 billion) it owes the regional bloc, it would open a "Pandora's Box" that could lead to the UK rebate from the EU being placed at stake.

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"There will be a moment when the Commission will start imposing ... fines on the amounts that are due," AFP quoted Dominik.

The bill is due on Dec. 1, but Cameron insisted he would not pay. The British PM, at the EU leaders' conference on Friday, said the bloc's demand is unacceptable. "We are not suddenly going to take out our chequebook and write a cheque for 2bn euros, it is not happening," Cameron insisted.

EU heads of state were informed of their dues to the union on Oct. 17. Dominik said that the budget adjustment process was both normal and a well-established financial tradition at this time of the year which should not surprise Cameron. He was caught unawares by the PM's reaction since there were no indicators that UK had problems with the amount, Dominik said.

However, the threat of withholding Britain's €3.8 billion rebate had led Cameron to instruct the Treasury to go over the amount being demanded by the EU. Tory MP Kenneth Clarke also said that the EU demand should not have surprised Cameron since both the Treasury and Foreign Office knew the bill was forthcoming as early as five months ago.

Dominik added that Britain had twice been given chances to question the amount but it didn't. The EU Budget official said that it UK fails to meet the Dec. 1 deadline, the bloc would impose late payment fines.

He also said that new laws are needed to amend the way the EU budget is computed, based on a formula that all EU member-states agreed.

The UK, he pointed out, "cannot question the system that imposes (an extra payment) and next day say it like the other element," referring to the rebate that Britain is due to receive under the same system.

TagsEurope, European Union, Economy of the European Union, david cameron, jacek dominik