/ 20 December 2005

Blair presses EU lawmakers to back budget

British Prime Minister Tony Blair pressed European Union lawmakers on Tuesday to back a hard-won budget deal to unlock money for poor EU newcomers, while stressing the need for a reform of the whole funding process.

But in a sometimes fiery debate in the European Parliament, party group leaders bluntly warned that the EU legislature — which in theory could veto the funding deal — will fight for more money.

”The purpose of the budget was to enable [EU] enlargement to be a success,” Blair told the EU deputies, referring to the bloc’s ”big bang” expansion to include 10 mostly ex-communist states last year, with more waiting in line.

”But what we need is a far more fundamental reform,” added Blair, whose country holds the EU presidency until December 31.

European Union leaders clinched a deal early on Saturday on the bloc’s 2007-2013 budget, resolving a years-long wrangle that had threatened to add to the EU’s sense of crisis after the rejection of its Constitution this year.

Attacks at home

Blair has suffered a storm of attacks at home for agreeing to cut about €10,5-billion from London’s long-cherished rebate, famously secured by then premier Margaret Thatcher in 1984.

But on Tuesday the British leader dismissed the domestic criticism — at one point calling his job ”thankless” — and repeatedly underlined the importance of a review clause paving the way for reform of the whole budget.

The clause calls for a comprehensive review of all EU spending from 2008, including both the Common Agricultural Policy (CAP) — defended by France, fiercely attacked by Blair — and London’s contested EU rebate.

”I think this decision will in time be seen to be of critical importance,” he said, adding: ”We really do need a seriously reformed budget for the future.”

Rejection

In principle, the European Parliament has the power to reject the €862-billion budget, hammered out in the early hours of Saturday after a marathon mega-haggle between the EU’s 25 member states.

While analysts say it is unlikely the EU legislature will ultimately reject the spending plans, many members of the 732-member assembly have made it clear they wanted a ”more ambitious” deal.

”If Parliament had to vote on your budget deal today, we would reject it,” added Liberal Democrat leader Graham Watson, whose party is the third biggest in Parliament. ”There’s room for quite a lot of negotiation.”

Hannes Swoboda, of the Socialists, said: ”This is unacceptable to us in its current form. This budget is not yet ready. We’re looking for [EU governments] for some concessions.”

One of the most passionate exchanges was prompted by a Euro-sceptic British MEP.

Nigel Farage, of the United Kingdom Independence Party, accused Blair of selling out his country’s interests, saying the budget deal had been ”game, set and match” for French President Jacques Chirac over CAP reform.

A visibly furious Blair, jabbing his finger at Farage and other Euro-sceptic MEPs, retorted that they were living in the past.

”You sit with our country’s flag. You do not represent our country’s interests,” he said. ”This is the year 2005, not 1945. We’re not fighting each other any more. These are our partners.”

European Commission chief Jose Manuel Barroso underlined that the budget deal ”remains below the commission’s ambitions for Europe”.

But he conceded: ”This agreement has the merit of avoiding paralysis, of getting Europe moving again.”

Analysts say that, while the EU Parliament will be keen to flex its muscles, ultimately there is little risk of the budget being vetoed.

”They will not want to be held responsible for triggering a new crisis at this time and are almost certain to approve the budget,” said John Palmer, of the European Policy Centre. — Sapa-AFP