| Author (Person) | Bower, Helen |
|---|---|
| Publisher | ProQuest Information and Learning |
| Series Title | In Focus |
| Series Details | 23.10.02 |
| Publication Date | 23/10/2002 |
| Content Type | News, Overview, Topic Guide | In Focus |
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Foreign Ministers from across the European Union gave the green light to the EU's expansion to 25 Member States by 2004 at a meeting of the General Affairs Council on 22 October 2002 in Brussels. However they failed to agree on the financing of enlargement, leaving the most controversial issues to be resolved at the European Council in Brussels on 24-25 October The decision by EU foreign ministers follows the European Commission's recommendations on 9 October 2002 that negotiations with Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia should all be completed by the end of 2002, paving the way for all ten countries to join ahead of the next round of elections to the European Parliament in 2004. But whilst the countries joining the EU might have been decided agreement has yet to be reached on the financial arrangements in an enlarged Union. At the European Council in Seville in June 2002 EU leaders agreed to present a plan for the financing of enlargement at the beginning of November but some tough compromises will have to be made in Brussels if the EU is not to miss this deadline. Although foreign ministers have reached agreement on the method for calculating the budgetary position of new Member States and on the institutional arrangements in a Union of 25, three controversial issues remain unresolved:
Reaching an agreement on the level of direct payments to both current and new Member States is likely to prove the most difficult with current Member States divided on the way forward. Britain, Germany, the Netherlands and Sweden - all net contributors - argue that the Common Agricultural Policy must be reformed before the new budget period begins in 2006 since the current budget did not foresee giving subsidies to farmers in another 10 Member States. They advocate greatly reducing CAP subsidies or even gradually phasing them out. The German finance ministry has estimated that without such reform the annual EU budget would increase by €8 billion in the next budget period, with Germany paying a quarter of that amount. However, Germany is likely to face stiff opposition from the French government who have indicated that they are not prepared to discuss CAP reform before 2006 when the EU will adopt its budget for the period 2007-2013. Meanwhile Jacques Chirac, the French President, has attempted to shift the focus of CAP reform onto the UK's rebate on Britain's contribution to the EU budget which was negotiated by the then UK Prime Minister, Margaret Thatcher in 1984. At the meeting of foreign ministers Chirac suggested that the rebate, worth £2.8 billion last year, would have to go if France was to make any concessions on the CAP. In response, a spokesperson for the UK's foreign office said the rebate remains justifiable and was 'not negotiable', suggesting that any debate over the issue now could delay enlargement. With regards the structural package, Britain, Germany, the Netherlands and Sweden are keen for structural funds to be reduced by €5 billion to €25.5 billion in the period 2004-2006. Nikolai Atzo, the Dutch Secretary for Europe has indicated that unless the EU's Common Agricultural Policy, structural and cohesion policies are significantly reformed then the EU's budget for the next period could grow by €36 billion. Amidst such differences of opinion, the Danish government are well aware of the challenges they face in Brussels on 24-25 October at the first European Council of their current Presidency of the EU. Following the Council meeting, Danish Foreign Minister Per Stig Møller, said that progress was now a 'question of political will' and 'compromise on all sides' and he made it clear that the decisions must be taken at the European Council in order for there to be time for substantial negotiations with the candidate countries. Clearly, the Danish Presidency are not prepared to come away from Brussels without an agreement and sources close to the Danish Presidency have indicated that the meeting will continue until agreement is reached. If the Member States can agree on a compromise then the enlargement negotiations will be concluded in Copenhagen in December 2003 and the Accession Treaty will be signed at the Athens Summit in April 2003. Helen Bower EU foreign ministers agreed on 22 October 2002 that Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia should all join the European Union ahead of the next round of European Parliament elections in 2004. |
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| Subject Categories | Politics and International Relations |
