Tough talks ahead over 1bn euro sweetener for entrant countries

Date: 28/11/02

By David Cronin

DENMARKÕS EU presidency is bracing itself for two weeks of tough talking over its attempt to increase the amount of funding for new member states.

The Danes are adamant that every effort should be made by EU ministers and diplomats to secure a final deal on the cost of enlargement before their leaders head for the Copenhagen summit on 12-13 December.

They face an uphill struggle to win support for a proposal, presented to member and applicant states this week, on increasing farm subsidies for the ten states due to join the Union in 2004. The initial reaction has been largely negative.

Germany, the biggest net contributor to the EU budget, leads the opposition to the plan to provide an additional '1 billion to candidate countries and to increase production quotas for grain and milk by up to 3%.

A Danish diplomat said that the proposal was designed to benefit the poorest applicants - notably Poland, Latvia, Lithuania and Estonia. Poland's dairy farmers fear that many could go out of business if the EU sticks to limiting their annual milk yield to 9.5 million tonnes.

Addressing MEPs yesterday (27 November), Estonian President Arnold Rüütel described agricultural support as a 'problematic' question, which will have to be explained to his electorate before a referendum on accession. Latest opinion polls indicate 50% of his compatriots support the Baltic state's EU membership drive but 42% are opposed. However, Rüütel added: 'We understand the Union cannot forever remain in the position of a donor.'

The Danish package also provides for €900 million funding to strengthen borders in the new states and €600 million for nuclear safety improvements, mainly in Lithuania's Ignalina complex and the Bohunice plant in Slovakia.

Denmark's EU presidency is bracing itself for two weeks of tough talking over its attempt to increase the amount of funding for new Member States, ahead of the European Council in Copenhagen, 12-13 December 2002.