Alternatively, a low budget would help The Netherlands.SpainWhat they wantA gradual phasing out of the generous EU funding which has helped transform the Spanish economy over the past two decades. Madrid knows it will lose this cash now that poorer countries are inside the EU, but wants to spread a period of transition over five years.Would like to end rebate.What they will getBudget disciplinarians such as the UK believe Spain's big cash benefits from the EU should disappear as soon as possible. Rome can hope to benefit from any reform of the rebate, should that be achieved.NetherlandsWhat they wantDrop in contributions to the EU. Tough curb on spending and possibly reduction of the CAP.The Netherlands is the highest per capita contributor to the EU, one of the themes of the Dutch referendum on the EU constitution which led to a "no" vote.What they will getCould gain from any scaling back of the British budget rebate. Reduction in annual payments of €1.3bn to the British budget rebate. Italy pays the most towards the rebate after France.What they will getCould hope to get an addition of more cash to help the south if the Luxembourg presidency of the EU can conjure extra cash from a revised plan.
With support from Berlin, it should be able to protect most of the 2002 spending deal on the CAP but will probably have to fund some of the subsidies for Romania and Bulgaria from within this ceiling.ItalyWhat they wantProtection of the lucrative subsidies from the EU for the south of Italy, which is traditionally the poorer part of the country. This would help France which is the biggest contributor to the rebate. Also wants full implementation of 2002 deal on farm spending and extra cash for to Bulgarian and Romanian farmers when their country joins the EU in 2007.What they will getMight get a limited concession from the UK on the rebate, but not enough to satisfy President Jacques Chirac, who has gone to war over the rebate. A quid pro quo could be some limited concessions on farm spending.FranceWhat they wantBacked by Germany, France wants a freeze of the British rebate in 2007 at €4.6bn and its total abolition by 2013. This would cost the UK €3.5bn over the period 2007-13 but is not enough to satisfy France which is determined to get at least a freeze. Cut in overall EU spending to 1 per cent of gross national income.What they will getDeal would require a concession on the UK rebate.
One idea is to surrender the amount paid by the countries that joined the EU last year. A further 66 per cent agreed the right to work and live anywhere in the EU and the right to buy goods and services from anywhere in the Union was important.Divisions across EuropeBritainWhat they wantTo retain the British budget rebate in full.Overhaul of the Common Agricultural Policy spending which costs the EU around €44bn a year, from which France gets 20 per cent in receipts. It asked people whether they agreed with three statements about the EU, without revealing they were taken from part of the constitution setting out the EU's objectives.Unaware of the source, 62 per cent agreed with the constitution's position on freedom of trade, 79 per cent on its economic stance and 92 per cent on its definition of the relations between the EU and member states. It is entirely inappropriate to be unravelling the only part of this agreement that we have already closed. It would be dishonourable to the farmers."Jack Straw, the Foreign Secretary, told the Commons that, if necessary, Britain would use its veto to preserve the rebate. He said the European Commission's proposed budget for 2007-13 which would set the total at 1.26 per cent of gross national income was "completely unacceptable". The compromise proposed by Luxembourg for a 1.09 per cent increase was "a significant advance" but "still not good enough", he said.Mr Straw added: "Until and unless a rebalancing of spending takes place, the UK's rebate remains fully justified and we will if necessary use our veto to protect it."Most British voters support elements of theconstitution, an NOP poll showed yesterday.
