Britain ‘willing to talk’ on EU rebate
Jack Straw today made clear that Britain was prepared to compromise on its EU rebate, but only in return for wider reform of the union’s budget.
The foreign secretary was speaking on his way to the first formal discussions on the EU budget for 2007-13 since talks collapsed in June.
Then, the UK refused to concede any cuts to the more than £3 billion rebate obtained by Margaret Thatcher unless there was similar reform of the common agricultural policy (Cap) – something France refused.
Agricultural subsidies currently account for 46 per cent of the £72 billion EU budget, and critics argue that not only are they disproportionate within the 25 EU member states – France is the main beneficiary – but they also distort global free trade.
Britain is committed to securing a budget deal during December’s council of ministers meeting, and today’s discussions – which Mr Straw chairs – are aimed at finding a compromise ahead of world trade talks at the end of the year.
Speaking to reporters ahead of the meeting, Mr Straw said: “We’ve always made it clear that we’re willing to talk about our rebate, but it has to be in the context of reform of the budget and everybody understands that.”
He added: “It is difficult because there are differing national perspectives and I therefore cannot say whether in the middle of December we will or will not reach a deal, but it certainly will not be for want of trying.”
Speaking to MPs in the House of Commons last week, Mr Straw explained that the rebate had been won in 1984 when Britain was one of the poorest nations in the EU – now it was one of the richest.
What the UK government wanted, he said, was an EU budget that is “fair to all and takes account of the fact that the UK is a more prosperous nation”.
The focus should now be funding the “future of Europe – research and development – not agricultural spending”, he added.
Asked about the EU budget at his monthly press conference this afternoon, Tony Blair admitted talks were going to be difficult but said the government would “give it our best shot”.
He added: “There has never been any question of giving up the rebate – the question is getting a financial deal that is fair for everybody.”
