Copenhagen, 13/12/2002 (Agence Europe) - The EU15 Heads of State and Government and the leaders of candidate countries were still busy early Friday evening with difficult negotiations on the financial and budgetary conditions for accession to the EU of the first ten future Member States, on 1 May 2004. As foreseen, the Danish Presidency's efforts at mediation were mainly focused on Poland, given that the outcome of negotiations with Warsaw would also largely determine the result for other countries. While Cyprus and Malta seemed to have already officially closed their talks, the seven other candidates pointed out that they were willing to do the same once a final agreement had been reached with Poland, on condition that it is not discriminatory towards them. If, however, Poland were to gain additional budgetary compensation, then the other candidates would claim similar improvements, diplomats explained.
During a first bilateral meeting on Friday morning with European Council President Anders Fogh Rasmussen, Polish Prime Minister Leszek Miller clearly hinted that he considered the Fifteen's financial offer insufficient, and mainly called for "substantial" improvement to the volume of budgetary compensation. During the night of Thursday to Friday, the Fifteen had approved various "packages" proposed by the Danish Presidency while insisting - as Mr Rasmussen specified before the press - on the fact that the financial offer being made to candidates was "at the limit of budgetary resources". 'There is no more money", Mr Rasmussen said on Thursday evening. Once Poland had set the tone on Friday morning, the other candidates generally gave their "agreement of principle" for the offers being made, while stressing that they would call for the same improvements if Poland were offered additional improvements at the end of the day. During the afternoon, the Danish Presidency presented a compromise proposal which was approved by the Fifteen first of all (German Chancellor Gerhard Schröder - together with the Dutch Prime Minister, Balkenende, one of the most fervent defenders of the budgetary ceiling fixed the day before - was one of the first to inform the press of his agreement on this package).
At the time of going to press, it seemed that Poland would also finally declare it was ready to accept the Presidency's proposal. According to this compromise formula, that would not increase the global cost of the EU offer (which is 40.4 billion euro in commitment appropriations, for the period 2004 -2006) Poland would benefit in 2005 and 2006 of a new additional budget facility (cash-flow facility) of 1 billion euro (550 million in 2005 and 450 million in 2006). This billion euro would come exclusively from the fact that Poland would be able to benefit, in an anticipated manner in 2005 and 2006, from interventions under the Structural Funds, the actual payment of which would not have taken place before 2007 and the following years. This added cash flow should allow the Polish authorities better to manage their budgetary difficulties in the first three years of membership. At the same time, Poland would lose 1 billion euro in revenue in the long term under the Structural Funds. It would therefore be a question of a simple money transfer operation within the budget earmarked for Poland, without it having consequences on the EU budget.
In the context of this compromise, the Fifteen are said to have greed to slightly improve their offer of 300 million euro (payment appropriations) so as to increase the budgetary compensations ("cash-flow" facility) of the other nine candidate countries, by such an amount, for the three years from 2004 to end-2006. This additional money would be distributed between the nine countries according to a key-distribution based on demographic criteria, diplomats explain. Estonia's Prime minister Siim Kallas had also announced at the beginning of the evening to the press that his country would secure an improved financial offer of 1-2% compared to the offer made Friday morning. Other rumours, on the other hand, hinted Friday evening that these additional 300 million euro (announced early-afternoon to the press by Chancellor Schroeder) did not exist, as they would simply be identical to the 300 million euro that the Danish Presidency had agreed to last week with four candidate countries (Slovenia, Czech Republic, Cyprus and Malta) to improve an initial offer dating back to end-November. According to this information, it would not therefore be a question of increasing the ceiling of the EU's offer beyond the 40.4 billion euro.
Positive message to Bulgaria and Romania - "Integration of the ten new countries
is possible without affecting the smooth running of the EU"
Despite the relative confusion that reigned Friday evening over the financial negotiations, the Fifteen had previously sent a strong positive message to Bulgaria and Romania, a message that fully corresponds to what the two countries had hoped for: the EU set as goal to receive the two countries in 2007. Furthermore, the Fifteen approved the updated roadmaps which will help the authorities of both countries to take the necessary legislative decisions with a view to achieving the aim of 2007. Also, as planned, they decided to considerably increase pre-accession aid.
The Heads of State and Government also reassured those who feared that simultaneous integration of such a high number of new members could compromise the way the Union works. The transitional arrangements negotiated and the safeguard clauses imposed on candidates will make it possible to integrate these ten new members into the Union without coming up against the effective functioning of Community policies, the Fifteen state in the draft conclusions of the Summit. The result of negotiations is a "sound basis" which "guarantees the uninterrupted functioning" of the internal market as well as continuation of the various EU policies, the conclusions say.
The Heads of State and Government also specify in the conclusions that the future new members will also have their role to play in the definition of the future of the EU since they will play a full part (i.e. with voting rights) in the Intergovernmental Conference on revision of the Treaty that will be held after the European Convention, even if the IGC takes place before effective accession by the new members. Bulgaria and Romania will take part at the IGC with observer status.
Accession negotiations with the ten first future member countries completed - budgetary envelope up slightly
At 19.15, the Copenhagen deadline to put the greatest enlargement of the European Union on track was finally respected: Poland, Hungary, the Czech Republic, Slovakia, Estonia, Lithuania, Latvia, Slovenia, Cyprus and Malta will be able t join on 1 May 2004.
The individual "packages" approved without modification Thursday by the Fifteen, were finally re-transcribed in the final agreements of Friday: a) Budget: the total amount of appropriations allocated to the ten new Member states for the period 2004/2005 comes to 40.722 billion euro in payment appropriations, 38.44 million of which under EU policies, plus 1.985 billion euro in compensations and cash facilities. Of the 38.44 billion euro under the spending of the EU's traditional budget, these countries will receive 9.77 billion euro in spending under agriculture and rural development, 22.85 billion euro for structural actions, 4.15 billion euro in appropriations for internal policies, and 1.673 billion euro as administrative expenditure. b) Agriculture. The level of direct aid to agriculture ha remained unchanged in relation to the initial offer: the farmers of the new members will thus obtain 25% of aid normally paid in theEU in 2004, 30% in 2005, 35% in 2006. This aid could, however be topped-up with national funding, of which a maximum amount of 20% may come from funds paid by the EU for rural development. In all, after the topping-up, the level of direct aid will not, however, be allowed to exceed 45% in 2004, 50% in 2005 and 55% in 2006. Higher thresholds for national funding were decided for Slovenia. Production quotas also remained unchanged in relation to the initial offer by the Danish Presidency, including the milk quotas that several candidates wanted to see increased in Copenhagen. c) Regional aid. The overall budgetary envelope for the Structural Funds and the Cohesion Funds remained unchanged at 23 billion euro (commitment appropriations) for the ten new members over the three years (2004-2006).