20 June, 2005

Going nowhere: Anglo-French battle over the EU budget

» BBC News | Analysis: Two visions for Europe
18 June 2005
By Stephen Mulvey

After France and the Netherlands said No on the EU's constitution, Europe met with another obstacle - budget.

The leaders of each EU members met in Brussels on 16 and 17 June. But the summit ended up with not reaching agreement on a framework budget for 2007-2013.

There are - I think I don't need to explain these here in my poor English, but let me do so in order to satisfy myself and help my understanding - two points. One is the UK rebate, which the country started to recieve from 1984 when it was one of the third poorest countries in the European Community. And the other is Common Agricultural Policy of the EU, which especially French farmers benefit from.

And the debates are going nowhere, but at the same time highlighting the battle between the UK and France, which involves other EU members.

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Here are some quotes which illustrate diplomatic rifts among the EU.

» BBC News | Blair vows firm line in EU battle
13 June 2005
» BBC News | UK insists EU rebate is justified
19 May 2005

Mr Blair said during a visit to Moscow on 13 June; "I will be, as is my way, diplomatic but firm."

Tony Blair's spokesman said: "The rebate is fully justified, full stop."

And Blair said the British rebate could not be discussed unless it was alongside debate on all EU financing "including that 40% of the budget goes on agriculture which employs only 5% of the people".

On the other hand, Catherine Colonna, French European Affairs Minister, made it clear there was no room for negotiation over the lucrative farm deal, saying the CAP had been reformed in 2002 and did not need to be re-examined.

And she says; "the British position on the rebate defies EU logic and undermines EU solidarity."

Blair pointed that more than 40 per cent of the EU's budget is spent on agriculture, while only five per cent of its population are farmers.

German Chancellor Gerhard Schroeder said it would "not be possible" to achieve a deal on a new EU budget without a UK concession.

Sir Digby Jones, director-general of the onfederation of British Industry, says; "if the reform is not linked to ending European agricultural subsidies, it's blatant hypocrisy."

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» The Observer | Blair vows to break up CAP for Africa's sake
19 June 2005
By Heather Stewart and Nick Mathiason

In this context, I support Blair, although I don't know what's behind his remark and it can be part of his diplomatic tactics.

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This summary gives you an explanation on this issue;
» BBC News | Q&A: EU budget rows

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And the cartoon is from here;
» The Observer blog | Hands up if you *don't* think European agricultural subsidies need reforming
13 June 2005
By Rafael Behr

Whenever I see this kind of caricature, I admire a person who creates it. Needless to say, this describes the situation very well.