Luxembourg tries to tempt UK with rebate offer

By Anna McLauchlin

Date: 16/06/05

The EU's Luxembourg presidency has softened its position on the UK's rebate in a last-ditch attempt to win a consensus on the EU budget.

Late on Wednesday evening (15 June) the presidency produced a further compromise under which the rebate would still be capped at around €4.6 billion, but would no longer be reduced after 2013.

In the draft text, Luxembourg has also, for the first time, alluded to the link between the rebate and agricultural spending after 2013.

"Any change to the level of the UK budgetary correction after 2013 will depend in particular on the evolution of market-related expenditure and direct payments in agriculture post-2013," it reads.

Agriculture spending has been trimmed from €301 billion to €295bn, but on Wednesday night it was not clear whether the shortfall would mean a cash cut for Romania and Bulgaria or whether funds would be made up elsewhere.

Further concessions were also made in favour of Sweden, the Netherlands and Germany concerning the amount of VAT to be paid into the EU's coffers.

The three governments had presented a united front against their relatively high contribution to the budget.

Despite the concessions, Luxembourg premier and European Council President Jean-Claude Juncker told MEPs on Wednesday morning that he was "pretty sure" that the issue would not be settled at the European Council being held today and tomorrow (16-17 June).

Article reports that the EU's Luxembourg Presidency softened its position on the UK's rebate in a last-ditch attempt to win a consensus on the EU budget. Late on the day before the European Council on 16-17 June 2005 the Presidency produced a further compromise under which the rebate would still be capped at around €4.6 billion, but would no longer be reduced after 2013.