Blair to Rebuke Germany's EU Budget Demand at Cardiff Summit

Strategic Insights -

British Prime Minister Tony Blair is set to counter an attempt by German Chancellor Helmut Kohl to increase the European Union's budget, potentially threatening the UK's rebate on its EU contributions. The dispute could overshadow the two-day European Union leaders' summit in Cardiff, which marks the climax of Britain's six months in the EU's presidency. Blair plans to shift the focus to a new drive to devolve more EU decisions to member states, rather than engaging in a diplomatic row.

Key Takeaways:

  • The European Union's budget is set to be a contentious issue at the Cardiff summit, with Germany's Chancellor Helmut Kohl pushing for an increase in EU contributions.
  • The UK's rebate on its EU contributions, worth about Pounds 1.5 billion a year, is at risk of being abolished, which could see the country's contribution rise to about Pounds 3.5 billion per year.
  • Blair believes he can veto any move to end the rebate, requiring unanimous agreement among the EU's 15 member states for funding decisions.
  • Blair plans to shift the focus to a new drive to clip the wings of the European commission and devolve more EU decisions to member states.
  • The summit has also attracted protests from Eurosceptics, with opponents of a single European currency marching through Cardiff and a separate "alternative conference" planned for today.

Statistics:

  • The UK's current contribution to the European Union is approximately Pounds 1.5 billion per year, compared to the potential Pounds 3.5 billion if the rebate were abolished.
  • Germany's contribution to the EU is Pounds 7.15 billion.
  • The European Union has 15 member states.
  • The Cardiff summit marks the climax of Britain's six months in the EU's presidency.

Sources:

  • "The Sunday Times," Copyright (C) The Sunday Times, 1998
  • "opponents of a single European currency marched through Cardiff yesterday" (Source: unnamed, likely from Cardiff city council or police report)
  • "Eurosceptics will hold an 'alternative conference' today" (Source: unnamed, likely from a local news outlet or event page)