The Rebate.
Like a fairground ride, the discussions between France, Germany, and the UK went round and around. Despite Blair trying his hardest to reach a joint consensus, Jacques Chirac and Angela Merkel were seemingly very much uncooperative. This is something even José Manuel Barroso commented on. His speech seems to have done the job, and in the early hours of the morning and final budget plan was reached.
But was it the one we were expecting?
From what I can tell, it’s certainly not the best result. Britain has agreed to give up £7 billion (20%) of the rebate. This, for the developing Eastern nations at least, is good in that more money is now available for their own economic and social investments. However, it should be noted that countries from the 10+2 expansion are currently finding it difficult to spend all of the funds they are given – so is any more going to help?
In return for this move, which wasn’t as large as some were expecting, France has agreed to a budget review in 2008-2009, which could lead to cuts in farm subsidies. The key word here is ‘could’. Chirac has not categorically stated whether the CAP will definitely be on the table of discussion in the coming years. It seems to me that even if it is, little will be changed. Despite the fact that the review will be held across the whole of the financial system, EU governments will be able to take decisions on all subjects covered by the review - but will also be able to wield their veto. We saw during this recent debate that France was completely unwilling to reduce its agricultural subsidies even the smallest bit. My hopes are not high on this front; just one veto by France will stop the entire review in its tracks – a major flaw in the EU voting system.
General information about all decisions and agreements made can be found neatly surmised here.
Whilst I am very much in favour of the EU and its operations, for the most part, the bureaucracy involved and the vast amounts of political tension and pressure make positive forward steps slow and hard to come by. However, I fully support Tony Blair in not backing out of the talks. Should he have done so, and links with member nations would have been severely tested, if not broken entirely. When the review comes, hope lies in a strong Britain Prime Minister with support from the Eastern European nations, and Angela Merkel’s public drive to better Germany’s relationship with Britain.
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2 Responses to “The Rebate.”
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Hey Craig!
I like your writings here. I think the EU Rebate is another example of politicians doing what they do best - postponing difficult discussions to get them through the short term. I personally am with Blair on the whole EU reform front. I was most pleased with his attack against the UKIP MEP’s in the Euro Parliament. “Whilst you sit behind our flag, you in no way represent our country”. Classic.
I loved the diatribe, also. Very good in pointing out that we are friends and allies of the continent. I didn’t see video of the event, but i’m told he was most riled when saying it.