FRANCE: British prime minister Tony Blair said yesterday he believed an agreement could be reached at a summit in Brussels later this week to establish a "pause" in the ratification of the European constitutional treaty. But he was pessimistic about the possibility of a deal on the 2007-2013 EU budget
Mr Blair spoke at a press conference at the British embassy, after a 1½-hour meeting with President Jacques Chirac.
The two men dislike each other. Mr Blair said their discussion was "immensely amicable, but obviously there's sharp disagreement".
Alluding to the dispute over the EU budget, Mr Blair said: "I think it is difficult to see these differences being bridged, but of course we continue to talk to people, including the presidency, about it."
Mr Chirac has led the demand by 24 EU member states that Britain's rebate be phased out. Mr Blair says he would compromise if the Common Agricultural Policy could be re-examined.
At the time of enlargement last year, the British rebate amounted to €4.6 billion. It will reach €5.1 billion this year and €8 billion by 2013 if the present system is maintained.
Poorer member states from eastern Europe pay nearly 10 per cent of the rebate.
Mr Chirac argues that an October 2002 agreement, signed by Mr Blair and all European leaders, "sanctuarised" the CAP until 2013.
Earlier yesterday Mr Blair met the acting president of the EU Council, Prime Minister Jean-Claude Juncker of Luxembourg. Mr Juncker proposed freezing Britain's rebate at €4.6 billion per year through 2013.
Mr Blair's spokesman said Britain rejected the proposal because it would mean a loss of €25 billion to €30 billion over seven years, and would still leave Britain paying a third more than France.
As if to refute predictions of a high-profile and bruising encounter at the June 16th-17th European Council, Mr Blair and Mr Chirac chatted in English on the steps of the Élysée Palace after their meeting.
Mr Blair then walked the few hundred metres to the British embassy.
"In respect of the [ EU] constitution, I am now more clear than ever before that it is right to have some pause for reflection before proceeding," Mr Blair said.
"I believe it is possible that we could reach an agreement at the European Council."