Posted on 06/18/2005 11:10:42 AM PDT by Pikamax
Rebate row wrecks EU summit Blair rejects freeze plan as Chirac refuses to shift on farm subsidy
Nicholas Watt and Patrick Wintour in Brussels Saturday June 18, 2005
Guardian
The EU summit to agree a budget collapsed last night amid some of the most bitter recriminations ever seen between European leaders, with Jacques Chirac denouncing the British position as pathetic and tragic, and Tony Blair describing the French defence of agricultural subsidies as bizarre. Mr Chirac warned that the breakdown in the talks, the day after EU leaders abandoned their search for a new constitution, would change Europe.
Launching an attack on Mr Blair for scuppering a deal that he said was very close, Mr Chirac said: "I deplore the fact that the United Kingdom refused to take on board a reasonable share of the enlargement costs ... It is a bad result for Europe.
Mr Chirac berated Britain's main goal, to link reform of the UK rebate to reform of agricultural subsidies, saying: "There is no link between the British cheque and agricultural subsidies. No one asked for it apart from the British because it is not justified."
The recriminations over the collapse broke out in the early hours with Mr Blair indicating there had been a deliberate attempt by the Luxembourg presidency to isolate him. He said: "If there was such an attempt, it failed. We were not alone round the table. I think people know exactly what the issues are here and I do not think they are fooled by the tactics or manoeuvres."
The prime minister added: "This is not about who has the most solidarity for Europe. It is about what solidarity means today, not 50 years ago, but today. That is the issue before us. This is the right moment for that debate to happen."
A visibly angry Luxembourg prime minister, Jean-Claude Juncker, said: "Europe is not in crisis. It is deep crisis."
He said he felt ashamed that "certain people did not have the will to reach agreement when some poorer other countries were willing to do so".
Mr Juncker also said he would refrain from giving Britain any advice on how to handle its presidency of the EU, which starts in three weeks, since it had shown itself unwilling to heed any counsel.
The explosion of pent-up tensions suggests that Europe may be in danger of dividing into two camps with competing visions on its future direction, all at a time when the EU has lost its planned constitution and its currency is increasingly under threat.
The crisis was sparked by Britain's refusal to see its rebate frozen without clear guarantees that the future of the EU budget, including its emphasis on agriculture subsidies, would be rethought.
The summit was formally declared over at 30 minutes after midnight, soon after the show of hands by EU leaders, even though EU newcomers from eastern Europe offered last-ditch sacrifices to save the budget. Without an agreement, vital projects to revive their economies are on hold.
While Britain will not be isolated, the greatest focus will be on Mr Blair after he publicly rejected a proposal by Luxembourg, which chaired the talks, to freeze the rebate without accompanying this with a reform of the EU's £31.7bn farm subsidies. By the end of the lengthy talks in Brussels last night the prime minister rejected two offers, with Downing Street claiming that the second offer was even worse than the first on two grounds:
· It "explicitly ruled out the possibility of any reform" to farm subsidies until after 2013 - the end of the budget period under discussion.
· It withdrew what had been regarded as a vague offer to open up the budget during a review at the end of 2008. "Therefore what has gone is a possibility of a reform of all aspects of the budget," the spokesman said. "In other words, it has been diluted."
The decision by Luxembourg to change its first proposal is likely to raise fears in No 10 that French efforts to isolate Britain over its rebate may have paid off.
Mr Juncker, who enjoys cordial relations with Paris and Berlin but not with London, held a series of one-to-one meetings with the main leaders in which he insisted that Britain made the main moves. Downing Street, which now faces an awkward start to the British presidency of the EU next month, said Luxembourg had been deliberately trying to "shave off" countries which had their own objections to the budget.
There were initial signs that Spain, which was pressing for a longer transition period to help with a reduction in cash for its poor regions, was dropping its objections, although it eventually voted with Britain against the budget proposals.
Mr Juncker also held meetings with leaders from the Netherlands, the largest per head net contributor, which was angry that its payments are too high; Italy, which wanted more money for its poor regions in the south; and Sweden which wanted a smaller budget overall.
But Britain's hardline stance is likely to strengthen the hand of Mr Chirac who is determined to deflect attention from the French rejection of the EU treaty by portraying Britain as Europe's troublemaker.
In a careful diplomatic dance yesterday, the president initially rejected Britain's proposals out of hand as he called for further cuts in the rebate and the "disappearance of the cheque" altogether when the next budget starts in 2013.
Twisting the knife, he added: "The future of the British cheque after 2013 cannot be in any way linked to a review of agricultural spending." With the talks entering a second night, the French president attempted to isolate Britain by saying he would accept a compromise proposal to freeze the rebate at the current level.
"A freeze is not enough, but if it is a compromise, like all compromises, we'll have to accept that it doesn't make everyone happy," an aide to the president said of an early proposal. Mr Juncker used the French change to step up the pressure on Mr Blair who turned down a freeze which would have cost Britain £1.8bn a year.
The rebate would be increased to £3.9bn and then frozen - at a cost of £1.8bn which Britain would have secured if there was no change.
A proposal to exempt new, poor members of the EU was accepted by Luxembourg, but the money would be spread among all countries, with France benefiting the most.
Downing Street last night underlined Britain's tough stance. The prime minister's official spokesman said: "We believe very firmly that there has got to be a fundamental look at the budget. The prime minister is prepared to keep the rebate on the table but only if everything is on the table. As we keep saying, the rebate is just a symptom of the overall problem, not the cause of the problem itself."
With the euro declining for a third successive week amid the political uncertainty, many leaders had hope for a deal to show that the EU can deliver.
Jose Manuel Barroso, president of the European commission, said: "It is vital leaders reach an agreement, even if it is not perfect, to show Europe works."
The EU will be able to function because the budget is not due to kick in until 2007.
But the 10 poorer countries who joined last year will not be able to draw up spending plans until a deal.
In addition, the new countries are not entitled to full EU benefits - known as the "full envelope" - until 2007. If a deal is not reached by then they will remain on more modest funding levels
It's so hard to see such good friends fighting. Sniff.
Man, I always have trouble getting my rebates as well.
This happens every 50 years or so, and then some country is marching their troops into Paris.
"but the money would be spread among all countries, with France benefiting the most."
I think the above quote says it all. "France benefiting the most" is what is the clue to the whole EU story. Everybody pays into the pot and France raids the pot. Socialism at its finest.
According to an AP report, Jacky Chiracy is laying the whole blame of the EU talks collapse on Britain. However, Britain reminds everyone that four other countries were unable to reach agreement. According to Tony Blair referrig to Jacky Chiracy's dictatorial manner, "I'm not prepared to have someone tell me there is only one view of what Europe is. Europe isn't owned by any of them; Europe is owned by all of us." Jacky Chiracy should be listening to his people's refusal to ratify the EU Constitution that he pushed so hard on. Guess Jacky Chiracy won't be ruling the EU.
I hope it's the Polish Army this time. Maybe once things settle down in Iraq, they'll send in a squad to conquer France.
Every time I see this type of European subsidy mess I am reminded of what will happen if the UN gets any fiscal claims on the US, taxation or otherwise. It will be an endless attempt to suck us dry.
Absolutely. Neither the EU nor any other entity are friends with the US when it comes to money and where they can vacuuming it out.
It all started with the partnership between the Odd Couple, Germany and France. Germany was suspect, after having started three major attempts to conquer Europe, beginning in 1870. By having France as a partner, Germany gained political and moral credit. France supplied the moral cover, and Germany supplied the cash. So France got used to being paid by its allies.
With France and Germany controlling the EU, everyone else was forced to pay France, too, except maybe their closest partners in crime, Belgium and Luxembourg.
Bwahahahahaha!!!
This is all falling apart faster than I thought.
Good for you Tony, stick it to that smarmy, pompous greaseball Chirac.
This is just a rehash of the EU lies about Iraq. Chirac and his ilk make a big stink about the supposed "unilateralism" of others, by which they mean the failure of France to get its way. It's quite entertaining to watch those greedy crybaby Socialists in action.
Oh, and by the way, clearly Mr. Juncker is Mr. Chirac's poodle...
Sacre bleu! (LOL!)
But of course! Note all this happened on the eve of the 190th anniversary of the Battle of Waterloo. ;)
Just as he did with Bush. I just don't think it's going to work this time Jacque, no matter what the author clearly believes. The people are on to this deflection towards the U.S. and now to Britain to take attention away from your own failures.
Seems Jacque is behaving as our Liberals do. When in trouble, blame the other guy and throw a hissy fit. When's France's next election?
I hear the French are kind of scared of the crack Polish Plumber Division!
Wouldn't it be ironic if 'Polish plumbers' succeeded where Napoleon, Hitler, and Stalin failed ?
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