Jacques Chirac, the former French President who took his country into the single European currency, died aged 86 this morning. His son-in-law told the French news agency AFP: “President Jacques Chirac died this morning surrounded by his family, peacefully.” Jean-Claude Juncker, the president of the European Commission said he was “moved and devastated” following the news of his death.

The EU chief said in a statement: “Europe is not only losing a great statesman, but the president is losing a great friend.”

Mr Chirac served as head of state from 1995 to 2007.

He also served as the French prime minister, but a series of corruption scandals tainted his leadership.  

In 2011, he was convicted of diverting public funds while serving as the mayor of Paris.

Among his major domestic political reforms was a reduction of the presidential term of office from seven to five years.

Moreover, his relationship with Britain was not incredibly smooth.

According to a 2005 report by the Daily Telegraph, he was the man behind European calls for the abolition of the UK rebate.

Margaret Thatcher’s rebate, which she secured in 1984, is arguably still a symbol of EU resistance.

The British Government resisted European campaigns to abolish the rebate since the early 2000s. 

All EU countries contribute to the EU budget, and in return benefit from EU spending in their countries.

Because the bulk of the EU budget is spent on the Common Agricultural Policy (CAP), which supports farmers’ incomes, countries with a large agricultural sector generally get more back than they put in.

Large countries like Britain and Germany are net contributors to the EU budget.

However, in 1984, Margaret Thatcher negotiated a reduction of two-thirds in the UK’s net contribution, to be paid by other EU members, on the grounds that the agricultural subsidies favour small farmers. 

There are million of smallholders in France, who designed the system, and very few in Britain. 

According to the Daily Telegraph, Mr Chirac led European calls for the abolition of the rebate a month before the start of the EU’s budget negotiations in June 2005. 

The move was seen by Tony Blair’s Government as a betrayal, as the French head launched the attack hours after the former Prime Minister had come to his aid in a row over economic reform.

During a press conference in Brussels, Mr Chirac said: “We can only truthfully achieve an appropriate balance if we reopen the debate on the British cheque [rebate].

“The rebate might have had some justification when it was secured by ‘Monsieur Thatcher’ but it can no longer be justified. It is from the past.”

A Government spokesman responded to Mr Chirac’s claims, saying the rebate was “fully justified in 1984 and is fully justified now”.

He added at the time: “Even with it, Britain pays two and a half times as much into the EU budget as France in absolute terms. 

“Without it, it would be 14 times as much.

“There can be no deal on future financing in June that does not protect the rebate.”

Between 1984 and 2002 Britain paid £38billion into the EU budget, compared with France’s £19billion, the Daily Telegraph reported. 

Senior Conservative MPs interpreted Mr Chirac’s comments as a sign that Mr Blair did not defend Britain’s interests in Brussels.

Sir Graham Brady, then the shadow Europe Minister, said: “The rebate was won by a Conservative government and is absolutely crucial to the UK. 

“Given Labour’s record of surrender in EU negotiations, we simply do not trust this Government to keep it.”

Even though Sir Graham’s prediction never came true as the rebate was never abolished, Mr Blair did arguably surrender to the EU during negotiations. 

In 2005, the Labour politician decided to agree to a 7 percent cut in the rebate during negotiations on the EU budget deal.

The agreement reached by Mr Blair cost Britain £7billion over the course of seven years.

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