Luxembourg, 22/10/2002 (Agence Europe) - Tuesday "General Affairs" Council only made slight progress (agreement of principle on institutional chapter and on the method for calculating the financial positions of the future Members) in preparing the decisions over funding enlargement expected at the Brussels Summit on Friday, which led the Danish Presidency to issue a severe warning to all those who may be counting on a deadlock in Brussels to postpone decisions to the European Council of Copenhagen, in December. "If we want to respect our undertaking to complete negotiations by the end of the year, the required decisions (on financing) will have to be taken in Brussels this week. The technical work is done, now it is a question of political will", Council President Per Stig Moeller told the press. "We cannot wait for Copenhagen to decide on the Union's negotiating position, as if we postpone everything to Copenhagen, the enlargement process will not be over by the end of the year", he insisted. Only to finalise the EU position in December would mean that candidate countries will be placed before a "take it or leave it" situation, which is what the Presidency wants to avoid at all cost, notably so as not to place candidate countries in a "difficult position" in view of their accession referenda, he said. "In Brussels Thursday and Friday, all will have to be aware of the historic responsibility they are carrying (…). We are so close to the objective, I cannot imagine a Member state still being able to prove an obstacle to enlargement", declared Moeller. Commissioner Gunter Verheugen said his agreed with Mr. Moeller's analysis, but sounded more optimistic as to the chances of reaching agreement in Brussels. Tuesday's Council was "exceptionally positive", and it "prepared the way for a successful European Council", Verheugen told the press. "I am very confident that Brussels will be a success and that we shall be able to conclude negotiations in Copenhagen", he added.
As to substance, Tuesday's Council allowed them to reach agreement on the complex calculating method allowing them to predict the financial situations of the future members. The Fifteen also agreed on the transitional arrangements that will apply in 2004 in the institutional field, given that some provisions of the Nice Treaty will only take effect in 2005 or later. The agreement reached on Tuesday also comprises mechanisms governing the threshold for a qualified majority in an enlarged EU, the distribution of seats in the EP and the rotation of the future presidencies. Differences, however, remain on the following issues:
The list of candidates in the first wave. No delegation disputed the Commission's recommendation of completing negotiations in December with the 10 known countries, but the Netherlands has not yet been able to take a stance, as it is waiting for the outcome of this Wednesday's debate in the Dutch Parliament. "The Commission is happy that there is agreement on the ten countries in Council", Mr. Verheugen commented.
Global volume of future structural aid (Structural Funds and Cohesion Fund) for the new members. The Presidency took on board the Commission's proposal providing for a global amount, in commitment appropriations of 25.5 billion euro for the first three years (2004-2006). Tuesday, several Member states (Germany, the Netherlands, Sweden, France) disputed that amount, considering it too high. Germany proposed that commitments under structural aid have a ceiling of 21.4 billion euro for 2004-2006. According to diplomats, the four cohesion countries (Spain, Greece, Portugal and Ireland), on the other hand, backed the proposal of the Presidency and the Commission.
Direct aid to farmers. The Danish Presidency simply noted that, as to substance, the positions of the different Member states remain unchanged. Thus, Germany, the Netherlands, the United Kingdom and Sweden continue to demand a reduction in the global costs of direct aid, preferably from 2004 but 2006 at the latest. The other eleven delegations seem to be able to rally around the position of the Danish Presidency (based on the Commission proposal) of gradually granting, over 10 years, direct aid to the farmers in the new members, beginning with 25% in 2004, 30% in 2005 and 35% in 2006.
Budgetary compensations for net payers among the new members. The Fifteen remain divided on the very principle being proposed by the Commission, by which no new member should be in a less favourable financial situation in 2004 than that of 2003. Were that to be the case, budgetary compensations (lump sums) should be paid to balance their budgets. The Danish Presidency and a great majority of delegations back the proposal, but according to at least four countries (United Kingdom, Germany, the Netherlands and Sweden) it would suffice to ensure that the newcomers are not net contributors in 2004, without having to compare their financial situation in 2004 with that of 2003.
Monitoring and the safeguard clause. The Fifteen globally support the Commission approach aimed at strengthening the monitoring system, which should allow for the necessary pressure to be placed on candidates showing weaknesses in their preparations in 2003. As for the "special" safeguard clause that - according to the Commission - would go beyond economic and include justice and home affairs. It has already been approved by most countries, but the Netherlands (supported apparently by Finland) are calling for the clause to cover as many domains as possible, preferably all the acquis communautaire; for the period in which it can be launched to be extended beyond the two years proposed by the Commission; and for Member States to have a say in the decision to put an end to measures taken to implement the clause.