Brussels, 14/12/2005 (Agence Europe) -The Ambassadors of the Member States, meeting at Coreper on Wednesday, did not discuss the latest British proposal on the financial perspectives, which was unveiled on Wednesday lunchtime (see other articles), but made progress in the finalisation of draft conclusions on the other subjects of the European Council of 15 and 16 December. Of the subjects, two may require an in-depth discussion: the status of candidate country for the Former Yugoslav Republic of Macedonia (FYROM) and reduced rates of VAT on catering services.
On FYROM, Coreper reached a sort of agreement in principle on Wednesday, on a draft text which is set to feature in the conclusions of the summit. Under this compromise, which was accepted by France under certain reservations, the European Council will grant FYROM the status of candidate country, whilst noting that "any future proceedings" on the accession process must be considered in light of the general debate on the EU's enlargement strategy, which is due to take place in 2006 (for the conclusions of Monday's Council, see EUROPE 9088) and the respect of political, and other, criteria by FYROM (particularly in the implementation of the Stabilisation and Association Agreement, SAA). Diplomats explain that France seems able to accept this wording, as long as the text makes no specific reference to the opening of accession negotiations, and for the requirement of a general debate on enlargement in 2006 to be withdrawn. France apparently also told Coreper that it was keeping its reservation on the decision on FYROM in place, pending the other results of the European Council overall- but made no specific reference to the financial perspectives.
As for reduced VAT, Coreper held an initial exchange of views on Wednesday, on a new British proposal, providing to renew the annex on temporary delegations until 31 December 2010, and also adding catering services. At the same time, the new Member States will see their temporary derogations (negotiated with their accession) extended until 31 December 2015. In Coreper on Wednesday, Germany declined to take position, saying that it felt that this issue should be dealt with by the summit. Other countries, such as Denmark and Austria, criticised such elements as the excessively long duration of the new derogations proposed. The UK Presidency concluded that the dossier will require "political arbitration" at the European Council (see EUROPE 9083).