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Independent: France puts EU enlargement on the line in bid to save farm subsidies

The EU's new former Communist countries are to be offered further concessions tomorrow under new plans designed to isolate France and clinch a deal in a tense negotiation over the EU's budget.

Britain, which holds the presidency of the EU, is also prepared to reduce the value of the UK's rebate and probably to make that change permanent.

With the row over the budget due to reach a climax at a summit starting on Thursday, France issued a veiled threat to hold up future enlargement of the EU unless there is a deal over EU spending for 2007-13.

Paris is resisting British demands that a review of EU spending in 2008-9 should lead to concrete changes to the EU's Common Agricultural Policy before 2013. Instead of fighting on two fronts at once, Tony Blair will seek to bring on board the eight ex-Communist nations which stand to lose billions in subsidies under spending cuts proposed by the UK.

By putting forward an increase in EU expenditure, Britain hopes to rally the Eastern European countries behind its revised proposal before seeking to pressure France into agreeing to a wide-ranging clause reviewing agriculture spending.

One British source said: "Is France really saying that it is going to hold up a funding deal for the whole of Europe? We think the new members will gradually come round to the idea that a deal this week is in their best interests. If we don't get one now, they might have to wait a long time.

by Fran (fran at eurotrib dot com) on Tue Dec 13th, 2005 at 12:05:50 AM EST
Guardian: Blair plans compromise on EU rebate

Tony Blair is preparing to give ground to Jacques Chirac later this week over the EU budget by offering to make further - and permanent - cuts to its rebate.

As France threatened to block EU enlargement unless Britain slashed its rebate by £9.3bn, Mr Blair was putting the finishing touches to a series of concessions yesterday.

Jack Straw, the foreign secretary, will make the first move in the House of Commons tomorrow when he outlines proposals to offer money to the new EU member countries in eastern and central Europe.

Protests from countries such as Poland, which has threatened to veto the budget negotiations after Britain proposed a £9.3bn cut in structural funds for the east, has persuaded Britain that it will have to offer extra funds. This may be achieved by increasing the planned £564bn budget from 1.03% of the EU's overall income to 1.04%. The budget will be for 2007-13.

Britain hopes that sweeteners to the EU's new recruits will persuade Poland not to use its veto and make it more difficult for Mr Chirac to accuse Britain of abandoning the east.

Downing Street will wait until the European summit in Brussels on Thursday and Friday before wooing Mr Chirac with an offer to cut the rebate by more than the £5.3bn offered last week.

by Fran (fran at eurotrib dot com) on Tue Dec 13th, 2005 at 12:08:31 AM EST
[ Parent ]
EU budget impasse 'will hit expansion'

France warned the UK yesterday that expansion of the European Union could be hit if EU leaders fail to agree a new budget this week.

Speaking at a Brussels meeting of foreign ministers, Philippe Douste-Blazy, the French foreign minister, said the EU needed to think hard about beginning a new wave of enlargement. He added that further expansion of the 25-nation bloc could be open to question if the EU failed to finance last year's entry of 10 new member states with a budget this week.

"Should we go on with a new wave of enlargement?" he asked. "Is this the right moment . . . when the EU has yet to find the institutional or financial solutions to the challÃ,­enges of the enlargement we have already carried out?"

At the centre of the debate is the former Yugoslav RepÃ,­ublic of Macedonia, which the European Commission believes should be formally declared a candidate for membership. But Brussels has not yet named a date for the start of talks and privately officials say there is no chance of negotiations next year.

by Fran (fran at eurotrib dot com) on Tue Dec 13th, 2005 at 12:16:53 AM EST
[ Parent ]
Ah, Macedonia is at the centre of the debate. Well now...
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Dec 13th, 2005 at 02:06:15 AM EST
[ Parent ]
BBC: Barroso seeks further rebate cuts

European Commission President Jose Manuel Barroso has written to UK Prime Minister Tony Blair asking for more cuts to the UK rebate.

The UK has offered to cut 8bn euros (£5bn) from the rebate between 2007 and 2013 but Mr Barroso called for "a further effort from the UK".

He said this could unlock agreement on the budget at a summit later this week.

The UK is currently working on a new budget proposal after its first one was rejected by the other states last week.

The UK's first proposal set the overall level of expenditure at 1.03% of the EU's gross national income, and envisaged a significant cut in the amount of development aid for the 10 new member states, which joined the EU in 2004.

"New member states need to be offered significantly higher levels of investment than in the current proposals," Mr Barroso said.

by Fran (fran at eurotrib dot com) on Tue Dec 13th, 2005 at 12:41:28 AM EST
[ Parent ]
Deutsche Welle: Britain Tells EU to Expect No Surprises As Budget Crisis Looms

As EU foreign ministers met for the final time before their make-or-break summit this week, the fractious bloc looked no closer to coming up with a proposal for the EU budget which would satisfy everyone.

For those who brought even a modicum of hope with them to the meeting in Brussels, the possibility of current European Union president Britain presenting new proposals to ease the impasse died quickly as British Foreign Secretary Jack Straw announced as way of introduction the fact that there would be nothing to discuss.

Diplomats at the meeting said the foreign ministers spent less than a minute on the 2007-2013 budget since there were no new British proposals on offer. "It lasted 45 seconds," one said. Straw merely said London would put forward revised proposals during the week but added that London would not pay any price for an agreement.

"We're not in for a deal at any price," Straw told reporters, referring to the pressure Britain has been under to relinquish more of its annual rebate to fund aid to new east European members in the budget.

Straw's stance makes it look increasingly unlikely that that there would be any concessions on the long-term EU budget when the ministers of the 25-nation bloc convene on Wednesday. When pressed on whether there was a chance of an accord being agreed upon on Thursday and Friday, Straw told reporters: "I can't say."

by Fran (fran at eurotrib dot com) on Tue Dec 13th, 2005 at 12:56:41 AM EST
[ Parent ]
One British source said: "Spin, spin, spin spin."

Afew Snark Technology ™
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Dec 13th, 2005 at 02:04:17 AM EST
[ Parent ]
One British source said: "Is France really saying that it is going to hold up a funding deal for the whole of Europe? We think the new members will gradually come round to the idea that a deal this week is in their best interests. If we don't get one now, they might have to wait a long time.
I don't read this as spin, but as another thinly veiled threat that, if the budget is not agreed during the British presidency, Britain will prevent one from being reached during 2006.

Britain has too much at stake and is clearly not acting an honest broker. Austria and Finland are both much better placed to act as honest brokers here.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 03:58:37 AM EST
[ Parent ]
a deal this week is in their best interests. If we don't get one now, they might have to wait a long time.
That is, if France does not let the UK have its way, the new member states will have to wait for a long time.

And since it is a native speaker saying this, they can't claim that they somehow fumbled their pronouns.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 04:19:14 AM EST
[ Parent ]
I agree but see what Jerome says below. There's a new frame on the situation that the UK is putting out through the Eng-lang media, since it had started to be clear Britain had lost contact with the new member states. The new frame is a tendentious if not fraudulent presentation of the facts, aka spin.
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Dec 13th, 2005 at 06:36:10 AM EST
[ Parent ]
It seems to me that it is not a frame put out throught the English media as spin, but the actual UK negotiating position. Apparently that's what Blair himself said in the press conference after he met with the Visegrad group a couple of weeks ago. DoDo and I discussed it in last week's EU (p)review (linked), where I also dug up some amazing remarks by a UK minister at an EP committee meeting.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 06:41:48 AM EST
[ Parent ]
Migreu,

From reading about the EU, your comments appear to be spot on. What benefit is there to the UK to behave in this manner over the EU budget?

Also I want to clarify some very thoughtless remarks I made on 8 Dec 2005 in Frans column.

I deeply apologize for any upset my remarks caused. As an American I am having a great deal of trouble with the now known fact of just how involved the American government is involved in all the various aspects of the atrocities associated with Torture, Renditions, Secret Prisons etc. Though I love my country, It makes me feel dirty, deeply ashamed, beyond outrage and physically sick to my stomach. When I saw your reaction to my comments, I realized what my state of mind was, and decided I needed a few days off Blogs to get my thinking straightened out.

The European Tribune did an outstanding job of highlighting the various aspects of these crimes last week on their pages. Frankly it was almost a relief to see that your press made it at least visible. That is so much more than the American Corporately owned media did here. I have long admired the manner in which Europeans seem able to so much more sanely think situations through, and formulate possible outcomes and solutions. So, I responded like an angry and scared child wanting my older and wiser cousins to come rescue us, instead of as a sane adult. Living in the U.S.A. right now feels like being in an insane asylum, with the inmates in charge.

This is by no means excuses my thoughtlessness, and is offered only as an explanation of my state of mind.

I said After all Bush can't carpet bomb Europe or the corporations would be very angry that their markets are now rubble. I should instead have asked, of what or why is Europe afraid of what the US would do, and why are they not reacting more strongly against these crimes?

You replied I would hope the reason Bush could not carpet bomb Europe would be that the Joint Chiefs of Staff would refuse. I would sincerely hope so.

You know Migeru, I too would like to hope the Joint Chiefs of staff would behave responsibly. Yet with each day that passes, there are new revelations of complete insanity, lies and a yet deeper lowering of conscience and morality by these people. Never in my 60+ years have I seen our government controlled by so many sick, twisted, lying, depraved and perverted pyscopathic individuals.

Input from the Military is rejected by the Bush Administration and, dissenters, with the civilians in charge, will have their careers and lives destroyed. The ONLY thing that seems to catch the attention of these awful people are bottom line corporate wealth and their next great scheme to totally loot the American treasury for generations to come. So I am not sure just how much effect the advice of the Joint Chiefs or any military person would have. And this Criminal Cabal somehow believes it is their "Divine Right" to strike out using Military technology against perceived enemies.

When I used the term "dramatically alter", you responded with "Dramatically alter" meaning the rendition flights would stop over to refuel in North Africa? Perhaps I have misunderstood or not read enough, but I still think that European Pressure would force the Bushitas to back down. My reasons are:

  1. Europe, using diplomacy, has better relations with Mid East countries than does the United States. That translates in more trade with Europe.

  2. THE EU is perceived as "the group" with whom the Mid East prefers to do all its business after the treatment they have received the last 5 years from the Bushita Cabal.

  3. Iran (if they can ever agree on an Oil Minister) and Argentina have already adjusted their countrys' monetary systems to switch from "Petrol Dollars" to "Euro Dollars". Other oil producing countries would follow in retaliation for the bullying hubris of the Bushitas. Perhaps this change would be good for Europe, but in reality it would cause the American economy to completely crash. It would be a public humiliation for the Bush regime. Yet, at the end of the day, it is the 98% of Americans on the lower side of the economic scale that would pay the most penalizing price.

I realize this is a long comment, and somewhat off topic from today's discussion. Yet I felt I did not have the right to participate in any of these discussions, if I did not attempt to make my amends. Please forgive my faux pas.  

"A nation can survive its fools, and even the ambitious. But it cannot survive treason from within." Cicero
by Grandma M on Tue Dec 13th, 2005 at 10:12:58 AM EST
[ Parent ]
Grandma M, I have two things to say.

  1. I am too cynical for a 30-year-old
  2. I have a tendency to apply a 90-degree turn to people's comments
  3. I put a lot of obscure irony in what I write, and I can't count to two.


tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 10:20:51 AM EST
[ Parent ]
Thank you Migeru.

As to not being able to count to two, seems like math and scientific logic are your forte with the name of your email address. I use to teach at a college in New Hampshire - language  and absolutely nothing to do with science or math. Where do you teach/work? Ever the curious teacher I am!

"A nation can survive its fools, and even the ambitious. But it cannot survive treason from within." Cicero

by Grandma M on Tue Dec 13th, 2005 at 10:29:56 AM EST
[ Parent ]
I don't teach any more. My students could not stand my (mis)demeanor.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 10:44:31 AM EST
[ Parent ]
The problem with all that maths and logic is that arithmetic becomes more complicated than it seems ("2 + 2? You mean base 10, right? And that little cross sign, that's integer addition?") . And anyway, he's a physicist, which means he has to do experiments to confirm the outcome of this "counting" thing, if it exists.
by Colman (colman at eurotrib.com) on Tue Dec 13th, 2005 at 01:17:23 PM EST
[ Parent ]
I'm not a physicist, I'm a dilettante.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 01:49:38 PM EST
[ Parent ]

The EU's new former Communist countries are to be offered further concessions tomorrow under new plans designed to isolate France and clinch a deal in a tense negotiation over the EU's budget.

Are they totally stupid, or really, really devious??

Until the budget proposal, France was supposedly isolated. Then the proposal came, were somewhat nice to France, but very nasty to supposed friends in Eastern Europe, thus triggering notes the Blair was isolated. Now, the new proposals will allow for a reconciliation with the new members, and leave France as the lone hold out?

Even if true, how is that progress, as we bump up again on the initial problems, still unresolved? Do they really think that we should think the world of Blair for solving a problem he created in the first place with his proposal?

Was the problem created just to show that Blair can "solve" problems with the new members, who are reasonable, but not with unreasonable France? Seriously?

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Tue Dec 13th, 2005 at 03:55:59 AM EST
[ Parent ]

Friction with UK causes Warsaw to seek allies elsewhere

Friction between Warsaw and London over the British proposal for the 2007-2013 EU budget, which could see as much as €14bn ($16.5bn, £9.4bn)) cut in funds for new member states, is forcing Poland to look elsewhere in Europe for allies in the negotiations.

Britain won a positive image in Poland by being one of only three EU members to fully open its labour markets to the 10 countries that joined in 2004.

(...)

But Britain's hardball negotiating tactics over the budget are leaving bruised feelings in Warsaw and the French government has been making strenuous efforts to improve relations with the new Polish regime.

(...)

Poland has also found new reasons to co-operate with France as both countries are significant beneficiaries of the EU's Common Agricultural Policy, leading to what the Polish foreign ministry called a "micro-alliance with France".

(...)

For Poland, Britain's view of the EU seems to have been captured by a controversial e-mail sent by Charles Crawford, the British ambassador in Warsaw, to his superiors in London.

He denounced the "hypocrisy and absurdity" of the budgeting process and criticised the "rudeness and ingratitude" of the EU's new central European members.

Mr Crawford's office explained the leaked e-mail was a joke. The Polish foreign ministry plans to invite him over to discuss the differences between Polish and British senses of humour. But Polish officials in Brussels were aghast at Mr Crawford's "joke memo", saying it would only fuel concerns in eastern Europe about Britain's reliability as a partner.

"This will do dramatic damage to Britain's image in eastern Europe," said one official. "It will be difficult to persuade people to trust the Brits in future. Tony Blair will have to pay more now to allay those concerns."

"It was always absurd for Polish politicians to talk about building a new EU based on relations with London. That's why I'm grateful for Crawford's letter because it's a lesson on Britain's views of the EU," said Marek Sarjusz-Wolski, editor of the Unia & Polska, a monthly focusing on European issues.

Remember that Straw endorsed it.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Tue Dec 13th, 2005 at 05:35:34 AM EST
[ Parent ]
It was always absurd for Polish politicians to talk about building a new EU based on relations with London.
Take a map of Europe and highlight Spain, Franch, Germany and Poland. That is the natural extension of the Franco-German axis.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 05:53:52 AM EST
[ Parent ]
Good to see some Polish reaction to the "joke".
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Dec 13th, 2005 at 07:11:20 AM EST
[ Parent ]
Those poles don't understand British humour.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 07:14:50 AM EST
[ Parent ]
I have an idea. Why don't we all accept Blair's budget, and then next year ask that his budget, which we will name through a leaked email to the press "the most immoral, useless, policy ever, give or take communism", be reviewed before 2008?

Now in paragraph above replace "Blair's/his budget" with "the CAP".

by Alex in Toulouse on Tue Dec 13th, 2005 at 04:54:53 AM EST
[ Parent ]
I have a better idea. Why don't we call the UK's bluff? Let's have no agreement this month and let the UK block any agreement in 2006. We'll have no budget. The current 6-year budget will be extended, the European Parliament will have control of the allocations, the accession of Romania and Bulgaria will be postponed, the EU will grind to a halt, and then maybe people will say "oh, shit, we need to fix this" and actually try to fix things?

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 05:03:03 AM EST
[ Parent ]
Another idea, have them join Euroland. Then they'll really start getting the feel of Europe. Frankly, in my experience, the first day I used my euros outside of France was after taking a 1h30 train to Brussels ... I was speechless: it was awesome to buy beer in Brussels with the same (type of) coins I had used the night before in Paris.

I also remember being with a Serbian friend and her ex-husband, who is Bosnian, on the night that Slovenia joined the EU: we did the countdown and slammed champagne ... this is, in essence, what Europe is about. The spirit.

by Alex in Toulouse on Tue Dec 13th, 2005 at 05:17:42 AM EST
[ Parent ]
That is the problem, to judge from the press (tabloid and not) and the political discourse, the British don't share the spirit. They are happily insular. Then again, I wonder if the Welsh and Scottish have a different attitude to Europe than the English do. The Irish seem to.

Look, I have no problem with Norway, the UK and Switzerland staying out of the political EU. EFTA and the EEA are good enough.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 05:30:04 AM EST
[ Parent ]
It also shows in small things. Cars from most EU countries have new licence plates with the EU sign on it. They look the same for most countries - but I have yet to see a british car with the EU sign on.
by Fran (fran at eurotrib dot com) on Tue Dec 13th, 2005 at 05:49:22 AM EST
[ Parent ]
Hey Fran that reminds me of something I noticed. EU countries place their flag and a EU flag behind their president/prime minister when he/she makes a speech or press conference. Well, it seems that Bush's US has stepped up the fight and now puts 3 flags behind their president. I just started noticing this the other day ... there were 3 American flags behind Bush ... at first I thought "geez why so many flags", but then it made sense when I tied it to Europe. Maybe I'm wrong, it's just a hypothesis.
by Alex in Toulouse on Tue Dec 13th, 2005 at 05:56:01 AM EST
[ Parent ]
I counted about a dozen cars with European "GB" plates today on the way home from the tube station (10 minute walk, brisk pace). I would say the percentage of cars with EU plates is in the low single digits. Then again, only the newer cars would have them in any case, but I wonder if it is a voluntary choice?

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 03:42:58 PM EST
[ Parent ]
You're totally right, particularly about the EFTA/EEA bit (which I'm sure would anyhow satisfy the Brits, since any poll on perceptions of the EU in the UK will tell you that it's the "horrible Brussels political machine" that they hate the most). So that makes you right yet again. We're going to have to do something about that. People can't just walk around being right all the time.

Like you, I don't know about the Welsh and the Scots, but if the English are against something, it's almost certain that the Welsh and Scots will be in favour of that same thing, just to piss off the English.

by Alex in Toulouse on Tue Dec 13th, 2005 at 05:52:08 AM EST
[ Parent ]
I'm not sure about this, though it does seem to me there's a more edgy anti-Europeanism among the English, more tendency to crow and think they're superior. Also the Welsh and Scots have more to gain in regional aid (and CAP!) than the richer, particularly Southern, English.

But everybody in the UK has been subjected to the same Europhobic propaganda for the past twenty-five years. Not much hope, I'm afraid.

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Dec 13th, 2005 at 06:51:01 AM EST
[ Parent ]
Let's see how much of the UK is eligible for regional aid...

Objective 1

All these regions have a number of economic signals/indicators "in the red":
  • low level of investment;
  • a higher than average unemployment rate;
  • lack of services for businesses and individuals;
  • poor basic infrastructure.




tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 06:57:42 AM EST
[ Parent ]
Objective 2
Objective 2 of the Structural Funds aims to revitalise all areas facing structural difficulties, whether industrial, rural, urban or dependent on fisheries. Though situated in regions whose development level is close to the Community average, such areas are faced with different types of socio-economic difficulties that are often the source of high unemployment. These include:
  • the evolution of industrial or service sectors;
  • a decline in traditional activities in rural areas;
  • a crisis situation in urban areas;
  • difficulties affecting fisheries activity.



tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 07:00:31 AM EST
[ Parent ]
So the UK is a net contributor to the EU budget. Bug deal! If the EU budget went away, do you think the UK would make up for the lost structural funds to the peripheral regions of the UK (including Cornwall and the North of England)? Doubtful. As far as UK economic policy makers are concerned, the people of those regions should just join the thriving "unskilled service job market". Would you like fries with that?

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 07:19:42 AM EST
[ Parent ]
There are some other structural funds.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 07:02:06 AM EST
[ Parent ]
Hey, hey... See that little red dot of misery in the centre of England that qualifies for Objective One/Two ? That's where I am from...

</regional pride snark>

by Metatone (metatone [a|t] gmail (dot) com) on Tue Dec 13th, 2005 at 07:22:01 AM EST
[ Parent ]
You're just benefit leeches all of you </new labour snark>

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Dec 13th, 2005 at 07:23:31 AM EST
[ Parent ]

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