EU summit round-up: Chirac serviced, UK rebate attacked

The EU’s fifth spring economic reform summit was overshadowed by wider political issues, indicates Europe’s press coverage.

France and Germany had their way with Europe’s heads of state and government, conclude many observers.

A controversial EU proposal to open Europe’s market in services will now be re-worked mainly due to pressure from Paris and Berlin – both of which were strongly against the proposed directive.

Die Welt asks why Luxembourg Prime Minister and holder of the EU presidency Jean-Claude Juncker could not prevent the climb down.

Elmar Brok, a senior centre right MEP, described French and German pressure as a form of blackmail.

Jacques Chirac was clearly the EU summit winner as other leaders gave ground to prevent a ‘non’ in a looming French EU constitution vote.

The president warned his country’s citizens that France would lose authority and influence in Europe in the event of a negative result on May 29.

"If France blocks the further construction of Europe the consequences would be far-reaching."

“I have a conviction that the current constitutional treaty represents progress on the social, economic and foreign policy fronts,” he said.

Le Monde carries an interview with Louis Michel, who argues that the issue of the EU constitution has become a political football for controversial European issues.

“The issue of the constitution has been used to debate, in a misguided way, the issue of Turkey, the EU's external borders and the Bolkestein directive,” said the European development commissioner.

Michel criticises member states for blaming “Brussels” when things go wrong domestically but believes that the ‘oui’ camp has a true sense of the future of France.
       
Britain’s 20-year old EU cash rebate is under pressure as Europe braces for a bruising round on budget talks.

The UK’s annual cash back from EU budgets is set to be scrapped under existing proposals for Europe’s expenditure 2007 to 2013.

UK foreign minister Jack Straw has vowed to block the moves. “The justice of the rebate is still there,” he said.

“We have one of the lowest net receipts of any EU country because of the relatively small size of our agriculture sector and its efficiency. That continues to be the case.”

Chirac has called on the EU to tear up Britain’s annual cheque for around €4 billion – a move that will not play well in London, after the UK backed France on services.

“We can only have a reasonable budgetary balance if we can reconsider the British cheque. It is no longer justified. It was from the past,” he said.

European Commission President José Manuel Barroso said the concession was outdated as EU agriculture spending contracted and UK prosperity increased.

“The situation is different from 20 years ago,” he said. “We can find ways through if we accept things have changed.”

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