EU GOVERNMENTS and MEPs will attempt to strike a last-minute compromise deal on the union’s 2011 budget next Monday after crunch talks broke down last night, threatening the establishment of Europe’s new diplomatic service.
Any failure to reach a deal by midnight on Monday would result in the EU budget for 2010 being rolled over on a month-by-month basis next year. This would be seen as a political setback for Europe as the negotiation is the first under new Lisbon Treaty rules, which were supposed to improve EU efficiency.
European Parliament president Jerzy Buzek and budget committee chairman Alain Lamassoure signalled their willingness to back away from MEPs’ demand for a 5.9 per cent budget increase in return for a greater say over the EU’s seven-year budget plan.
But this was strongly resisted by Britain and a number of other member states, leading to a break- up of the day-long talks after 7pm last night. Minister of State at the Department of Finance Martin Mansergh, who represented the Government in the talks, had signalled his willingness to continue with the dialogue.
EU governments wanted to limit the budget increase next year to 2.91 per cent, which would provide adequate funding to set up the European External Action Service and release additional funds to a major nuclear fusion research project in France.
While the governments are close to winning the day on that, member states and the parliament remain deeply divided over a concession for MEPs in return for their climbdown.
With governments throughout Europe engaged in drastic austerity programmes, MEPs’ demand for an increase twice as large as governments were willing to concede went down very badly in national capitals.
Diplomats said the European Commission tabled the draft text of a political agreement to deepen the involvement of MEPs in the negotiation of a seven-year financial plan for the union.
Ireland was willing in principle to go down that road but had reservations about the draft text. The unanimous support was required to adopt such a statement, but the British position was backed by Finland, Sweden, the Netherlands, Denmark and Latvia.
The British negotiator said London was not prepared to support any such statement, so the stage is now set for a difficult negotiation on Monday.
British prime minister David Cameron is reluctant to move further, as he set his face against any increase in the 2011 budget before the 2.91 per cent rise was proposed.