Deadlock remains in EU budget talks
Ministers from 25 European member states failed to reach an agreement on the EU budget last night.
It was their first meeting since talks collapsed acrimoniously in June, and was hoped to pave the way for an agreement on the 2007-13 budget by the end of this year.
“Everyone is pulling in their own directions,” said Polish Europe minister Jaroslaw Pietras after the summit in Brussels, adding that he could not foresee any deal emerging.
Talks collapsed this summer as France and Britain – which currently holds the EU presidency – could not agree on reform of agricultural subsidies or the UK’s rebate.
Margaret Thatcher won the £3.2 billion rebate in 1984, when Britain was one of the poorer nations in the EU. It is now one of the richest, and critics argue the rebate must be cut or scrapped altogether.
Foreign secretary Jack Straw has admitted circumstances have changed but the UK argues that it will only accept changes if the whole budget – including the Common Agricultural Policy (Cap), which makes up more than 40 per cent – is reformed.
France is the main beneficiary of the Cap, and has resisted changes, but critics argue the agricultural subsidies distort global trade and make it impossible for developing nations to compete.
Speaking yesterday, Mr Straw said “significant changes” in the level of overall EU spending and the structure of its financing were necessary to reach a deal.
Tony Blair said he remained hopeful of winning a deal on the budget by the end of Britain’s EU presidency, which lasts until December 31st, and in time for world trade talks in Hong Kong next month.
He told reporters at his monthly press conference that talks would be difficult, but added: “We’ll give it our best shot.”
However, Swedish state secretary Lars Danielsson last night said there was “a certain impatience” by other EU members over the UK presidency as “concrete proposals” were not forthcoming.
During the meeting, Mr Straw reportedly urged his counterparts to “modernise” the budget and agree on a timetable for a planned review on agricultural spending.
