Posted on 06/18/2005 4:45:25 AM PDT by Panerai
A bitter war of words has erupted among EU states after the failure to reach an agreement on the union's future budget.
German Chancellor Gerhard Schroeder blamed UK and Dutch obduracy for one of the EU's "gravest" crises.
UK Foreign Secretary Jack Straw expressed sadness, but said the failure could prove a turning point.
The EU's current president Jean Claude Juncker said he was ashamed poorer countries had offered to cut their EU income to reach a deal.
The summit collapsed after Britain refused to accept a demand by France and some other countries to accept a reduction in its EU rebate.
The BBC's correspondent in Brussels, William Horsley, says the recriminations mark perhaps the deepest and most spectacular bust-up ever in the EU.
It comes just weeks after voters plunged the union into uncertainty by rejecting its proposed new constitutional treaty.
(Excerpt) Read more at news.bbc.co.uk ...
Not a surprise. TANSTAAFL- There ain't no such thing as a free lunch.
more of the article...
UK 'pathetic'
The failure of the talks gave way to verbal sparring, as France, Germany and Luxembourg rounded on fellow member states.
French President Jacques Chirac said Britain's behaviour was "pathetic", adding he was shocked by the "arrogance of several rich countries" in the talks.
The UK rejected proposals to limit its annual rebate without a wider reform of the EU's agricultural subsidies.
Chancellor Schroeder said the summit failed because of the "totally unaccepting attitude" of Britain and the Netherlands, while Luxembourg Prime Minister and EU President Jean-Claude Juncker spoke of a "profound crisis" in Europe.
Britain, however, defended itself against the criticism, saying it was not alone in rejecting the proposed deal.
Speaking to the BBC on Saturday, Jack Straw said he was dismayed but optimistic.
"It is in many ways a sad day for Europe. But out of this sad day there is an opportunity to reconnect."
He said Britain would take the responsibility of leading the debate on the EU's future when it assumes the body's rotating presidency next month, although he conceded the task would be difficult.
"This will be seen as something of a turning point for the European Union. Sometimes to secure a turn in democracies, there has to be a shock," he said.
'Cause for shame'
As the talks disintegrated, 10 EU newcomers from Eastern Europe offered to cut their funding to salvage a deal, although their call went unheeded.
Mr Juncker said that only made matters worse.
"When I heard one after the other, all the new member countries, each poorer than the other, say that in the interest of reaching an agreement they would be ready to renounce some of their financial demands, I was ashamed."
But Britain said it has the backing of four or five other EU states in its rejection of the budget.
UK Prime Minister Tony Blair said the rebate was needed to compensate for the distortions caused by agricultural subsidies, the biggest beneficiary of which is France.
Good time to be investing in the Euro
This time, if they start a war "over there" let us stay "over here"!
I'm rather confident this will in fact be a great time to be investing in the euro. Whenever assets are manipulated by non-market forces, they always rebound sooner or later. This current bickering doesn't represent anything different from an economic standpoint. Moreover, the next several years will surely bring a few government changes in the EU that should lead to notable economic benefits, beginning with Schröder's ouster in Germany.
This is not a good time to be investing in Turkish lira, however..
I assume you mean by shorting it. There's no way it's going anywhere but down in the long run.
Besides high unemployment, low growth, growing socialists policiies, total disagreement between the members, and rejection of their Constitution. I am not sure what non-market forces you are referring to.
Why? And, what's the "long run"?
I assume he was ashamed of France for refusing to allow its' agricultural subsidies to be reduced.
I thought that everyone in the world got along with France and Germany and it is only the evil Bush Administration that is a lone ranger. Wait many the problem is France and Germany- you think?
None of those that you mention are anything new. They were all true when the dollar plunged versus the euro. Why do you suppose that is?
Because their overly socialists governments and world view are going to run their economy into the ground like it has been doing for years. Government spending in Euro as a percentage of GDP is very high. Unemployment is high. Growth is low. Until Europe starts to rein in government, they are going down,
Because too many people hated the US, but now they are thinking with their wallets.
You still didn't tell me what the "long run" is in your statement. People do not invest unto perpetuity. The "long run" can be one year, five years, twenty years, forty years. The answer "whenever" works just fine for rhetoric, but not so great for investment decisions..
Leni
LOL! I see that you clearly have no concept of what you're talking about. Never mind what I said before then - I didn't mean to intrude. Carry on!
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