LUXEMBOURG: BRITAIN STEPS UP WAR OF WORDS WITH FRANCE OVER REBATE AT INFORMAL FOREIGN MINISTER'S MEETING
Record ID:
208500
LUXEMBOURG: BRITAIN STEPS UP WAR OF WORDS WITH FRANCE OVER REBATE AT INFORMAL FOREIGN MINISTER'S MEETING
- Title: LUXEMBOURG: BRITAIN STEPS UP WAR OF WORDS WITH FRANCE OVER REBATE AT INFORMAL FOREIGN MINISTER'S MEETING
- Date: 14th June 2005
- Summary: (BN13) LUXEMBOURG (JUNE 12, 2005) (REUTERS) 1. SLV EUROPEAN FLAGS FLYING OUTSIDE BUILDING 0.03 2. MV PRESIDENT OF THE EUROPEAN COMMISSION JOSE BARROSO ENTERING BUILDING 0.12 3. (SOUNDBITE) (English) BRITISH FOREIGN MINISTER JACK STRAW SAYING: "If we abandonned our rebate, which we're not going to, none of Europe's fundamental problems would be solved. The rebate is not the issue, the rebate is simply a symptom of a much bigger problem, namely the structure of this budget and it is that which has to be sorted out" 4. MEDIA 5. (SOUNDBIT) (English) STRAW SAYING: "The common agricultural policy still accounts for forty percent of all spending inside the European Union and if we are serious as we the British government are, about aid and trade with Africa and other poor nations, then dealing with high level of agricultural subsidies which continental farmers receive is of great importance." 6. CAMERA OPERATORS 7. (SOUDNBITE) (English) STRAW SAYING: "The Prime Minsiter the Chancellor and I have made it clear that we are ready to use our veto if necessary." 1.12 8. MV POLICE OFFICER ON DUTY 1.15 9. MV GERMAN FOREIGN MINISTER JOSHKA FISCHER ARRIVING 10. FISHER TALKING TO MEDIA 11. (SOUNDBITE) (German) GERMAN FOREIGN MINISTER JOSHKA FISCHER SAYING: "This is more than just a general debate we have to look at the budget. We are starting from our position which is 1 percent, this is very important for us.We are ready to move, as the Chancellor has said when every one is moving and when we arrive at fair burden sharing" 1.44 12. DUTCH FOREIGN MINISTER BERNARD BOT ARRIVING 13. (SOUNDBITE) (Dutch) DUTCH FOREIGN MINISTER BERNARD BOT SAYING: (Asked if Netherlands will achieve their goals):"What is important is what the Netherlands can hope to get, and you know the situation in my country, I must go home with good results and we will work on it." 2.03 14. MV LUXEMBOURG FOREIGN MINISTER JEAN ASSELBORN ARRIVING 15. ASSELBORN TALKING TO SPANISH TV JOURNALIST 16. (SOUNDBITE) (French) LUXEMBOURG FOREIGN MINISTER, JEAN ASSELBORN, SAYING "With regards to the British rebate, there are movements in the right direction, but I think everyone knows, the twenty four, even the twenty five, know, with regards to this rebate, its very important but its not all. We need to progress on other issues that need to be sorted out" 17. POLICE 18. (SOUNDBITE) (French) ASKED IF THE PRESIDENCY WILL OPEN THE DEBATE ABOUT THE AGRICULTURAL POLICY IN ANSWER TO FRENCH MINISTER BARROT, SAYING: "No"/ ASSELBORN LEAVES 2.54 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 29th June 2005 13:00
- Keywords:
- Location: LUXEMBOURG
- Country: Luxembourg
- Reuters ID: LVAA00EIL18TJVD2DRPVBR1BEAMC
- Story Text: Britain steps up the war of words with France over the rebate at
informal Foreign Ministers' meeting.
British Foreign Secretary Jack Straw demanded on Sunday (June 12, 2005)
that the European Union reopen the issue of farm subisidies in a battle over
its long-term budget and renewed a threat to wield a veto to defend Britain's
rebate.
Straw brushed aside questions about whether London's annual refund from
EU coffers was up for negotiation, telling reporters on arrival for
last-minute budget talks that people were "deluding" themselves if
they thought the rebate was the issue.
He spoke at the start of a closed session of the EU's foreign
ministers kicking off a week of diplomacy which oculd shape the Union's
direction for years to come, or leave it rudderless.
Keen to divert the debate away from the rebate Straw said the budget
which was currently on the table was unfit and would fail to deliver jobs and
economic growth. He added that abandoning the rebate would not solve the
union's much bigger problems.
"If we abandonned our rebate, which we're not going to, none of
Europe's fundamental problems would be solved. The rebate is not the issue,
the rebate is simply a symptom of a much bigger problem, namely the structure
of this budget and it is that which has to be sorted out," Straw
said.
The Common Agricultural Policy (CAP) now accounts for 43 percent of the
budget. Britain, which receives little of that cash, was granted the rebate in
1984 at a time when it was far poorer and farm payments gobbled up 75 percent
of the community budget.
Straw said it was time to introduce fundamental changes to the CAP.
"The common agricultural policy still accounts for 40 percent of
all spending inside the European Union and if we are serious as we the British
government are, about aid and trade with Africa and other poor nations, then
dealing with high level of agricultural subsidies which continental farmers
receive is of great importance," Straw said.
He also said he would not agree to a budget at 1.24 percent of total
spending and that he was aiming for 1 percent. He said a 0.24 percent saving
was equal to 200 billion euros more than total national income of Poland.
He re-iterated Britain's willingness to use its power of veto to keep
the rebate.
"The Prime Minsiter the Chancellor and I have made it clear that
we are ready to use our veto if necessary," Straw said.
German Foreign Minister Joschka Fischer appeared to support calls to
reopen the deal preserving EU farm subsidies.
Asked about British demands to renegotiate a 2002 deal that locked in
farm spending at current levels until 2013, he told reporters that compromises
were possible.
"This is more than just a general debate we have to look at the
budget. We are starting from our position which is 1 percent, this is very
important for us.We are ready to move, as the Chancellor has said, when every
one is moving and when we arrive at fair burden sharing. Everyone has to move,
and if everyone is ready to compromise, we can make it," Fischer said.
He said it was not surprising that the British should seek to put
agricultural payments on the table because it was under such fierce pressure
over the rebate.
The Netherlands Foreign Minister, who is fiercely opposed to the
British rebate, said he would do his best to ensure a victory for Holland. He
added that he was particularly mindlful of his country's dissapointment with
Europe following the massive 'No' vote against the constitution.
"What is important is what the Netherlands can hope to get, and
you know the situation in my country, I must go home with good results and we
will work on it," Bernard Bot, Dutch Foreign Minister said.
Luxembourg Foreign Minister, Jean Asselborn, tried to downplay the
rebate issue saying that there were many other issues which the ministers had
to debate.
Luxembourg, which holds the EU presidency, is seeking a compromise
between the bloc's executive Commission, which wants member states to dig
deeper into their pockets to fund the costs of enlargement, and a group of six
major net payers, which are demanding big cuts in planned expenditure.
Failure to agree a deal this week would delay vital investment plans in
the new east European member states from 2007 because financial programming
has a long lead time.
"With regards to the British rebate, there are movements in the
right direction, but I think everyone knows, the 24, even the 25, know, with
regards to this rebate, its very important but its not all. We need to
progress on other issues that need to be sorted out," Asselborn said.
But when asked if they planned to reopen talks on the Common
Agricultural Policy he was adamant: "Non", he said.
The 25 EU foreign ministers began a final round of talks in Luxembourg
on Sunday evening ahead of a summit on Thursday and Friday due to clinch a
budget agreement under a shadow of political uncertainty over the EU
constitution.
Several EU leaders called for the summit to save Europe from crisis
after French and Dutch voters rejected the charter designed to make the
enlarged bloc function efficiently in referendums that undermined confidence
in the bloc.
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