Merkel and Blair ‘hopeful’ on EU budget
Angela Merkel today said she was hopeful of finding an amicable solution to the EU budget dispute, after her first visit to Britain as the new German chancellor.
During a press conference following a meeting with Tony Blair at Downing Street this afternoon, the prime minister and Ms Merkel stressed the importance of unity.
They downplayed disagreements between Britain and France over the UK rebate and agricultural subsidies, but failed to give any firm details about what had been discussed.
“I am very pleased that the British presidency has made progress in co-operating on the budget,” said Ms Merkel. “We can make progress. I’m glad that the British presidency will be furthering progress in this respect.”
Britain is currently under pressure to secure a deal over the EU’s 2007-13 budget ahead of the formal European summit in December, both in its position as holder of the EU presidency and in relation to its £3.5 billion rebate.
Many member states are calling for it to give up the rebate, secured by Margaret Thatcher in 1984, but the government has refused to do so without reform of the common agricultural policy (Cap), which mostly benefits France.
The current deadlock is causing fears that no budget will be agreed by December. In this case, the existing arrangements would roll over, to the detriment of the EU’s ten new accession states, who have been promised funds for regeneration.
Today, Ms Merkel refused to be drawn on Germany’s position in the current dispute between Britain and France.
“Germany and France have a very long European tradition of co-operation, but this doesn’t go against Britain. [In fact] it is desirable that it goes together with Britain,” she said.
Meanwhile, Mr Blair was also keen to downplay talk of a cross-channel rift, saying: “I’ve always expressed the view that it is important for Britain and France to work together.
“The whole point of the EU is that we are benefiting only if we are working together. It is therefore in Britain’s interests that Europe meets [its problems] together.”
He added that he was “hopeful” that the budget could be agreed while Britain held the EU presidency, until the end of the year.
Ms Merkel, Germany’s first female chancellor, is a known advocate of more liberal, free-market economic policies as championed by Mr Blair.
