Blair to scupper EU budget unless France accepts farm review

Blackleaf

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Oct 9, 2004
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Blair, thankfully, still refuses to back down to the arrogant and greedy French. Blair warned Jacques Chirac that Britain will scupper a deal on the EU budget unless France agrees to a wholescale review of farm subsidies.

And now, even Germany is starting to take Britain's side as Blair looks to isolate the French in the EU.






Blair to scupper EU budget unless France accepts farm review

· Chirac demands food subsidies be left alone
· Germany coming round to British point of view

Nicholas Watt in Brussels and Luke Harding in Berlin
Saturday December 10, 2005
The Guardian


Tony Blair threw down the gauntlet to Jacques Chirac yesterday when he warned that Britain will scupper a deal on the EU budget unless France agrees to a wholescale review of farm subsidies.

With less than a week to go until Britain chairs a European summit in Brussels, the prime minister rejected France's key demand that subsidies should be left untouched for the next eight years.
Asked in Downing Street whether a deal was possible without a review - which could kick in midway through the budget period of 2007-13 - Mr Blair said: "No. I can't agree a deal that doesn't allow the possibility of fundamental review."

His remarks set the scene for another confrontation with President Chirac, who this week rejected Britain's call for a root and branch review of EU finances. Mr Chirac accused Britain of unfairly targeting farm subsidies, which account for 40% of EU spending, and insisted that any reforms should only kick in after 2013.

The prime minister was careful not to name President Chirac yesterday after the two of them locked horns at the last major European summit in June. But there was little doubt who Mr Blair had in mind when he said: "To me it is just common sense that we should leave open the possibility of changing. If that happens then all the issues people like to talk about in respect of Britain come on the table."

Mr Blair, who spoke after meeting or speaking to 11 EU leaders over two days, is acting from a position of both strength and weakness. At home he has been vulnerable to attacks from the Tories after he admitted that he has abandoned any hope of securing a major review of farm subsidies by the start of the budget in 2007.

In Europe, Britain's plans to slash the EU budget from £580bn to £564bn - with a more modest cut in Britain's rebate and a 9% cut in structural funds to the east - has been subject to almost universal criticism. But there are signs that Britain may be gaining the support of Germany, which has bankrolled the EU for 40 years.

An attempt by President Chirac to win the support of Angela Merkel, the new German chancellor, to demand further cuts in the British rebate appears to be stalling. Mrs Merkel said the budget proposals were not acceptable but did not demand further cuts to Britain's rebate, saying: "I don't want to be too specific."

Germany's coalition government is believed to be warming to Britain's plans to cut the size of the EU budget from 1.06% of EU income to 1.03%. If Germany comes on board there will be intense pressure on the EU's new recruits, who are furious at Britain's plans to cut their structural funds by £9.3bn.

Mr Blair will try to win them round with some sweeteners and also with a warning: that if no deal is reached this year the EU budget will probably be decided annually.


guardian.co.uk