Britain handed budget rebuff

By Anna McLauchlin

Date: 08/12/05

The UK presidency was sent back to the drawing board yesterday (7 December) after foreign ministers broadly rejected its proposals for the next EU budget. But Foreign Minister Jack Straw warned that there was only a "narrow" negotiating margin.

Officials said that only four member states - Slovenia, the Czech Republic, Cyprus and Malta - came out in support of the UK presidency compromise, which would slash the budget by 24 billion euro but largely retain its widely contested rebate.

The Franco-British acrimony continued despite Budget Commissioner Dalia Grybauskaiteú's insistence that "negotiations are between 25 member states and not, as I am hearing here, between the UK and France".

"Today, Great Britain is very isolated," said French Foreign Minister Philippe Douste-Blazy, and demanded that the British cut their rebate by 14bn euro over the seven-year budget period rather than the _8bn currently on the negotiating table.

"I'm sure the French are willing to negotiate with our money, that has never been the problem," responded Straw, pointing out that, under the UK proposal, "France is due to receive receipts over the financial perspective period of 89bn euro compared to the UK's 49bn euro".

Straw said that he would put forward new proposals next week to see if any headway could be made.

Article reports that EU Foreign Ministers broadly rejected the UK Presidency's proposals for the 2007-2013 EU budget. Officials said that only four member states - Slovenia, the Czech Republic, Cyprus and Malta - had come out in support of the UK presidency compromise, which would cut the budget by 24 billion euro but largely retain the UK's widely contested rebate.

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