Madrid threatens to block approval of EU research budget

Date: 29/01/1998

By Peter Chapman

SPAIN looks set to block approval of the budget for the EU's Fifth Framework Research and Development Programme when ministers meet early next month.

Diplomats say Madrid is still insisting that it cannot agree funding for the programme, which is likely to cost up to 16 billion ecu over four years, before it knows how much EU structural fund cash it will get once the Union opens its doors to new members.

Spain is currently the biggest beneficiary of the structural funds, which are designed to bridge the gap between the EU's developed and less developed regions. But Madrid fears that this will come under threat when the Union begins to expand eastwards in the first years of the next century.

It is that concern which is behind its threat to block agreement on the new research budget until an overall deal on the future financing of Union policies has been agreed. This could effectively bring the EU's R&D plans grinding to a halt, since the budget for the programme needs the unanimous approval of all 15 member states.

With two weeks to go before a 12 February meeting of EU research ministers where the issue will once again be discussed, diplomatic efforts are being made behind the scenes to persuade Spain to lift its threat to veto the budget. While Madrid appears to be standing firm, officials claim there is still a chance that it might be persuaded to back down.

"It is early days yet. Reports that the budget will definitely be blocked are jumping the gun a bit. It is possible that with two-and-a-bit weeks to go we might see some progress," said one diplomat from a different member state.