Enlargement ‘still on track’ despite Hague crisis

Date: 17/10/02

By Dana Spinant

A CLOUD hangs over next Thursday's European summit in Brussels following the collapse of the Dutch government after only three months in office. Prime Minister Jan-Peter Balkenende was due to present his government's resignation to Queen Beatrix last night (16 October).

The collapse of the government will trigger fears that enlargement might be delayed, although the Danish presidency insisted it would not threaten the process.

The crisis in the Hague was sparked by the resignation of Deputy Prime Minister and Health Minister Eduard Bomhoff, along with Economics Minister Herman Heinsbroek after a power struggle between the pair. Both are members of the List Pim Fortuyn, the party founded by the politician who was shot dead just days before May's election.

Preparations for the European Council meeting had already received a setback after the failure of Gerhard Schröder and Jacques Chirac to patch up their differences over the funding of agricultural subsidies for enlargement countries at their meeting in Paris on Monday.

The summit aims to make major decisions on financing the accession of ten states due to join the EU in 2004, but the German chancellor admitted that his rift with the French president is unlikely to be settled before next week.

Schröder said that a solution would be found by the Copenhagen summit, but not everyone shares his optimism.

The Danish EU presidency insists an accord has to be reached in Brussels. Danish Prime Minister Anders Fogh Rasmussen said: 'Responsible EU leaders will recognise we are facing a historic chance to reunite Europe which should not be overshadowed by a detailed agricultural and budgetary discussion.'

Germany wants a reduction of direct payments to farmers, which consume half of the Union's €98 billion budget. But France, the main beneficiary, will not countenance cuts.

Along with the Netherlands, Germany is threatening that no direct payments will be granted to the new member states and urging a gradual phasing out of farm subsidies.

The collapse of the Dutch government on 16 October 2002, after only three months in office, has triggered fears that enlargement might be delayed, although the Danish Presidency insists it will not threaten the process.