Brussels, 14/06/2005 (Agence Europe) - Two days away from negotiations on financial perspectives, the Luxembourg presidency declared on Tuesday that “things are moving”, including the question of the British rebate which it has received since 1984. However, a few hours earlier London reiterated its opposition to the compromise which plans on a freeze of EUR 1.6 billion in 2007 in the British rebate, before gradually whittling it down from 2008.
After the meeting on Tuesday in Luxembourg between Jean-Claude Juncker and Tony Blair, the Luxembourg minister for foreign affairs, Jean Asselborn affirmed that, 'things are moving' in negotiations on the 2007-13 financial framework, adding, “I think the English ... have understood that they have to move. I hope that we are going to be able to resolve this problem so that we can take care of other remaining problems”. He was confident that “Blair ... is going to show his hand”, but he was unable to say when or how. “We'll see in the discussions,' he said. “Let's stay calm. We know we have to find a solution. Even the English know it. I'm still quite optimistic”' Asselborn said.
During his meeting with Mr Juncker, Blair had described the proposal of freezing the British rebate as “unacceptable”. His spokesperson said that the United Kingdom considered that the Luxembourg proposal would cost the country between EUR 25-30 billion over seven years. As a percentage of Gross National Income (GNI), such a system would cost the United Kingdom more than a third put into the common EU budget pot by France which would be unacceptable for the British, explained the spokesperson to the presidency. According to sources close to the presidency, Mr Blair had not rules out negotiations on the British rebate and had shown his desire to get negotiations at the European Council to finish up with an agreement.
On Tuesday afternoon, Tony Blair met president Chirac. The two countries only agree on limiting the EU budget to 1% of GNP in the EU's budget for the 2007-13 period. France believes that the British cheque is unjustified and the United Kingdom counterattacks underlining the need to sort out the whole of the EU budget structure, including agricultural spending. France considers that the British rebate (of which France pays 29%) is expected to increase to EUR 7.1 billion in 2007. France is demanding (with others, such as Germany, Spain, Ireland and Poland) to respect the whole agreement of the European Council of October 2002 which set the amount at EUR 330 bn for 2007-13 for agricultural spending (markets and payments to farmers) for the EU25. According to France this envelope should be added to agricultural aid in support of Romania and Bulgaria.
Polish Prime Minister Marek Belka said on Tuesday that after the “French and Dutch lessons” on the Constitution, “chances for a compromise” on the next financial framework were greater than before.