Foreign Secretary Jack Straw will restart negotiations on the European budget following the failure of talks in June. This time UK will be again under pressure on Monday from foreign ministers of other EU nations to give up its rebate demand. The EU foreign ministers meeting in Brussels will discuss expenditure for 2007 to 2013.
According to Foreign Secretary Jack Straw, Britain has accepted to discuss its EU budget rebate only to accommodate it in the context of wider reform of the bloc's finances.
The EU budget is estimated at 106.3 billion euros (72 billion pounds) this year. 40 percent goes towards farm subsidies, market intervention and rural development and 33 per cent is spent on programmes to aid poor regions. France is reportedly the biggest beneficiary of farm subsidies and Spain receives maximum regional aid.
According to diplomats, the deal on the seven-year €1 trillion (about £677 billion) EU budget depends on Britain’s willingness to give up its €4.6 billion rebate. Britain has stated that it will forego its rebate provided France is ready to receive reduced farm subsidies. Margaret Thatcher was instrumental in securing the rebate in 1984, which was a trade-off that allowed France to get a quarter of all agricultural funds. Britain has maintained that it still needs the rebate because without which its contribution to the EU budget would be disproportionate.
According to Celine Charveriat of the charity Oxfam, "The losers from a continued stalemate will be Europe's small farmers, who need more targetted support, and millions of poor farmers in developing countries who need an end to rich country dumping." According to Oxfam, top 15 per cent of the French farms received 60 per cent of the country's direct EU payments. Celine added: “This gives a lie to the French argument that it uses EU subsidies to support its small farmers.”
Straw said that that Britain, which chairs the 25-member bloc till the year-end, would endeavour for a consensus, though he added that success could not be guaranteed.
Another failure to reach an understanding on future spending would also add to the woes new Eastern European member states which are to yet receive EU funds.
Posted
on : Tue, 08 Nov 2005 01:35 GMT | Politics News
By : Anne Philips
|
