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Blair in crunch EU budget talks |
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Friday, 2 December 2005Tony Blair has indicated he is ready to give up some of the UK's rebate
UK Prime Minister Tony Blair is holding a second day of talks to persuade Eastern European leaders to accept a cut in the EU budget.
He has signalled he is ready to give up part of the UK's 5.6bn euro (Tú3.8bn) rebate if they agree to his proposals.
The new EU member states are said to face a 10% cut in aid under the deal.
Mr Blair is expected to have difficulties selling the proposal to the leaders of Czech Republic, Hungary, Poland and Slovakia.
Ahead of Mr Blair's arrival in Budapest, Hungarian finance minister Janos Veres told the BBC he would veto any reduction in funding to the 10 new member states.
He [Tony Blair] has a positive reputation in the former Communist countries where he has long-been seen as a champion of European Union enlargement
Nick Thorpe, BBC correspondent
On Thursday, the UK prime minister met the leaders of Estonia, Lithuania and Latvia in Tallinn.
Speaking afterwards to BBC Newsnight, Estonian prime minister Andrus Ansip described Mr Blair's proposal as "unacceptable".
Asked if he believed a deal on the budget was possible by the time the UK's EU presidency ends, he said: "Let's wait for the whole proposal and then we will know something about the figures and we can see what kind of deal there will be."
BBC correspondent Nick Thorpe said while Mr Blair had a battle on his hands, central European leaders would listen closely to what he had to say.
What you have got to remember is that we don't have to give it up at all
Graham Brady, Conservatives
"He has a positive reputation in the former Communist countries where he has long been seen as a champion of European Union enlargement," he said.
'A surrender'
The UK's offer to cede some of the rebate - won by Margaret Thatcher in 1984 - comes without any fundamental reform of farm subsidies being agreed, although Mr Blair believes he can still do battle on this issue.
Under the terms of the proposed deal, the UK would not receive any rebate from poorer countries in central and eastern Europe.
The UK may have to increase the amount it pays into the EU but the exact figures will be published next week.
Conservative Party Europe spokesman Graham Brady said it was "a surrender" and that the government had changed stance.
Attempts last June to reach a deal on the budget collapsed when the UK rejected calls to give up the rebate without an overhaul of the Common Agricultural Policy, something France - as the biggest farm subsidy beneficiary - refused.
The UK proposal will be discussed by EU foreign ministers on 7 December, and by heads of state and government at a summit in Brussels on 15 and 16 December - two weeks before the UK ends its presidency.
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Friday, 2 December 2005
BBC
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