Sign in Subscribe
European Union

EU Leaders Struggle to Reach Deal on 2007-2013 Financial Perspective

Strategic Insights

— 1 min read

EU leaders are grappling with negotiations to finalize the 2007-2013 financial perspective on future funding for the Union's policies, as talks on Friday afternoon teetered on the edge of collapse in Brussels. The UK Prime Minister Tony Blair is adamant that a deal is only feasible if there are radical changes in the share of the budget for agricultural spending, while French President Jacques Chirac insists that any further cuts in farm spending are "unacceptable".

Key Takeaways:

  • The UK is calling for a fundamental reform of the EU budget, including a reduction in the farm sector's share from 40% to a more balanced distribution.
  • French President Jacques Chirac has ruled out any further cuts in farm spending, deeming them "unacceptable".
  • The UK is defending its €4.6 billion annual rebate, arguing that the money is justified given its relatively small farming sector.
  • The Luxembourg Presidency has proposed capping the UK rebate at €4.6 billion until 2013, a compromise that is not acceptable to the UK.
  • Swedish Prime Minister Goran Persson has urged caution, arguing that it's better to have no deal than a bad one, and arguing for a thorough overhaul of spending priorities.
  • Denmark's Prime Minister Anders Fogh Rasmussen supports the call for reform of the budget, pushing for increased spending on research and innovation.
  • The ten new member states that joined the EU in 2004 are pushing for a deal to be agreed at this summit, fearing that a delay could result in them losing funding under the Union's cohesion funds.

Statistics:

  • The UK's annual rebate is €4.6 billion.
  • The farm sector's share of the budget is currently 40%.
  • The Netherlands has a net contribution to the EU budget of €3 billion.
  • The new member states that joined the EU in 2004 are requesting funding under the Union's cohesion funds.

Sources:

  • "EU leaders struggle to reach deal on 2007-2013 financial perspective" by Times of London (no date mentioned).
  • Statement by Luxembourg Prime Minister Jean-Claude Juncker (no date mentioned).
  • Statement by Swedish Prime Minister Goran Persson (no date mentioned).
  • Statement by French President Jacques Chirac (no date mentioned).
  • Statement by UK Prime Minister Tony Blair (no date mentioned).

Read more