Deep cracks emerge in EU budget talks

Britain, France at sharp odds over figures

BRUSSELS — A high-profile summit to negotiate the EU’s next long-term budget was delayed by more than five hours and then got off to a shaky start yesterday after stark differences emerged between Britain, France and other countries over the headline figures.

European Council President Herman van Rompuy, the chair and chief negotiator of the talks, had intended to put a budget plan to EU leaders yesterday evening, but postponed the move after it became clear there were insufficient grounds to strike a deal.

The budget, which covers the years 2014-2020, deals with nearly one trillion euros of spending on everything from agricultural subsidies to scientific research, roads and infrastructure, foreign aid and development assistance.

Negotiations over the package are deeply divided along national and regional lines, particularly between northern European countries that want to keep spending tight, and southern and eastern European states that want to maintain funding for infrastructure and farming.

On one side, newer — and generally poorer — members see Europe as a club that is only as strong as its weakest member. Led by Poland, they argue that Europe means nothing if the budget isn’t used to bridge the wealth gap and help restart growth.

On the other side, countries led by Britain are insisting that the EU has to make the same drastic cuts that member nations themselves are making in their national budgets as they weather the continent’s economic and debt crises. They want tens of billions of euros slashed off the 1.03-trillion-euro (US$1.35 trillion) budget originally asked for by the European Commission, the EU’s executive arm.

Those differences came to the fore yesterday, with EU officials saying France and Britain were at sharp odds.

Cameron has said he wants to see “tens of billions” of euros cut from the 972-billion-euro plan Van Rompuy put before the leaders at a summit in November, when it was not possible to reach a deal.

But in order to get the figures down to where Cameron would like to see them, it would more than likely mean cutting into programmes such as farming subsidies that France, Italy, Spain, Poland and other countries staunchly defend.

“We have to make savings, but without weakening the economy,” said French President François Hollande on his way into the summit in Brussels. “If Europe wants an agreement at all costs and abandons its common policies, I do not agree.”

The budget must be agreed unanimously, which means every country, from tiny Malta to Germany, carries a veto.

British officials indicated they had “like-minded” countries such as Sweden, Denmark and the Netherlands on their side, while France’s position has widespread backing from countries in the south and east of Europe. Germany stands in the middle and is likely to be the lynchpin of any deal.

“We are still not moving beyond the British problem,” said one diplomat.

Arriving for the talks, Hollande said there was a limit to how far he was prepared to go in the negotiations. “If there are some who are not reasonable, then I will try to reason with them, but (only) up to a certain point,” he said.

“The European Union should not be immune from the sorts of pressures that we’ve had to reduce spending, find efficiencies and make sure that we spend money wisely, that we’re all having to do right across Europe,” said Prime Minister David Cameron, who said that the numbers put forward in November were much too high.

The numbers “need to come down, and if they don’t come down there won’t be a deal,” Cameron said.

Herald with Reuters, AP