Cameron under pressure from MPs as EU demands end to rebate David Cameron was under mounting pressure on Europe last night as 100 Conservative MPs demanded a referendum and he tried to head off moves to abolish the £3bn-a-year rebate on Britain's EU contributions. In a strongly worded letter to the Prime Minister, Tory MPs urged him to pass a law before the 2015 general election to guarantee that a referendum "on the nature of our relationship with the EU" will be held in the next five-year parliament. John Baron, MP for Basilsdon and Billericay, said in the letter that the case for a referendum "is growing by the day." He argued that the "meddling" EU is "very different" to the EEC Britain joined in 1973, pointing out that no one under 55 has had a chance to vote on our membership. A referendum pledge made "sooner rather than later," he said, would address "the very real lack of public trust" in politicians. The growing Tory campaign gave Mr Cameron a headache as he arrived in Brussels for yet another EU summit overshadowed by the eurozone crisis. As the 27 EU leaders discussed plans to lower the crippling borrowing rates being paid by Spain and Italy, the German Chancellor Angela Merkel came under pressure from her French, Spanish and Italian counterparts to do more to bolster the single currency. There were signs that Germany's hardline stance was softening. But Ms Merkel's room for manoeuvre was limited because she needs to win approval today from the German parliament for the EU's new bailout fund. The EU summit also discussed medium and long-term plans for banking, fiscal and political union to stabilise the eurozone. The more immediate need to aid Spain and Italy may be settled at a working lunch of the 17 euro members today. The summit opened with a debate on the EU's €1 trillion spending plans for 2014-20. The European Commission wants to scrap the rebate on Britain's payments won by Margaret Thatcher, which refunds the UK 66 per cent of the difference between its payments to and receipts from the EU. The Commission argues Britain no longer needs it. Mr Cameron put down a marker by declaring that the rebate would not be surrendered or cut in budget talks due to conclude in December. "It is not up for negotiation," said one UK official. The Prime Minister will come under huge pressure to make concessions. He had an understanding with Nicolas Sarkozy that Britain would not demand radical reform of the Common Agricultural Policy if France did not attack the UK rebate. But the deal is unlikely to be maintained by François Hollande, France's new President. Mr Cameron wants a freeze on EU spending, saying it should show the same restraint as national governments, while the Commission is looking for a 3 per cent rise. Over a working dinner last night, the EU leaders discussed plans to forge banking union next year. Mr Cameron rejected pleas for Britain to join it, saying it should apply only to the 17 eurozone countries. He also opposed moves for an EU banking supervisor which could overrule national regulators. Last night EU leaders agreed a €120bn "compact for jobs and growth," in a switch away from "collective austerity." It includes an extra €10bn of new money for the European Investment Bank.