By Bruno Waterfield - 1st December 2005
UK leader Tony Blair begins efforts to convince Europe’s newest and poorest countries to pay the price for a deal on European expenditure for 2007 to 2013.
Blair on Thursday heads East to begin a charm offensive for British EU presidency proposals to cut regional funding in future Brussels budgets.
Estonian, Latvian and Lithuanian leaders will be the first new EU members asked to swallow ten per cent reductions in European cash targeted at Europe’s poorest areas.
Blair then takes his road show from Tallinn to Budapest for talks with the leaders of Hungary, the Czech Republic, Slovakia and Poland.
The Visegrad four have already written to Blair reminding him of the UK’s support for 2004’s EU enlargement and the importance of the “cohesion” funding Europe’s newest and poorest members have been promised.
“When looking for new solutions let us not miss the political focus which is to provide the same chance for the new member states for catching up successfully as the earlier beneficiaries,” the leaders wrote.
“For us the stakes are high. The question of success of failure… influences the answer whether we can meet all the expectations of the recent enelargement.”
Blair’s task has not been made easier by an intervention from European Commission President José Manuel Barroso.
Following a “frank” meeting, Barroso compared Blair to the bad guy of the British Robin Hood legend.
“The president has made it very clear he does not expect the British presidency to take the role of the Sheriff of Nottingham, taking from the poor to give to the rich,” said the commission spokesman.
But the UK has built in some wriggle room at the negotiating table, say sources close to talks, allowing new EU members to cut the cuts and declare a victory.
Another option is extend time limited EU funds for the new EU member states, allowing them more time spend cash.
London has highlighted commission figures showing that the newest EU countries have trouble absorbing regional funding.
The UK is set to table cuts that are over €170 billion down on original European Commission proposals for EU spending between 2007 to 2013, proposed in early 2004.
London is set to trim a June 2005 compromise EU expenditure package of €871 billion by over €20bn to €851bn in budget proposals to be discussed at a Brussels summit later in December.
Because EU agriculture funding is frozen – at the demand of France in 2002 – cuts can only come from regional policy payments aimed at giving Europe’s poorest areas infrastructure and economic growth.
The strategy sidesteps – but does not resolve – a bitter fight between the London and Paris over farm subsidies and a British annual rebate linked to the UK’s low take up of direct EU agriculture payments.
France is urging the UK to end the rebate to help fund enlargement, London is refusing while Paris retains a lock on agriculture cash that benefits French farmers.
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