UK rejects EU rebate freeze

The UK has rejected a Luxembourg EU presidency compromise on the British rebate – but negotiations continue.

British leader Tony Blair has ruled out buying in to proposals freezing the UK rebate at present levels in EU budgets from 2007 to 2013.

But the Luxembourg EU presidency has hinted that the door is not closed to more negotiations.

And Blair has yet to rule out another compromise bid floated by the UK’s European Commissioner Peter Mandelson.

Following talks with Luxembourg’s Prime Minister Jean-Claude Juncker, Blair issued a statement via his official spokesman.

“What the presidency are proposing is a freeze of the rebate. There seems to be agreement between us and the presidency that between 2007 and 2013 the cumulative cost of that to us would be €25-30 billion,” said the statement.

“We would still be paying one-third more therefore in that period than France, for instance. That is not acceptable to us and we have told the presidency so.”

Blair also held Tuesday talks with French President Jacques Chirac – Paris has manufactured a classic EU budget crisis over the rebate – and discussions will be frosty.

But, speaking after Blair left to meet Chirac, Luxembourg’s Foreign Minister Jean Asselborn stressed that progress had been made.

“Things are moving. I think the English... have understood that they have to move. I hope that we are going to be able to resolve this problem so that we can take care of other remaining problems,” he said.

"Blair... is going to show his hand. We'll see in the discussions... Let's stay calm. We know we have to find a solution. Even the English know it. I'm still quite optimistic."

After talks in the Elysée, Blair highlighted “sharp disagreement” with Chirac over the rebate.
 
“In respect of future financing, it is very difficult. You know the positions that the respective countries have had. There is no need to rehearse them,” he said.

“The meeting I have just had with President Chirac was immensely amicable. But obviously there is a sharp disagreement. I think it is difficult to see these differences being bridged, but of course we continue to talk to people including the presidency about it.”

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