As some of you may be aware, national governments, the European Commission and the European Parliament are currently negotiating the EU’s new multiannual “framework budget” (Financial Perspectives) for the years 2007-2013. This agreement between the EU’s main players outlines its strategic policy choices for seven years to come, and probably more. Its precise contents are therefore incredibly important for the EU’s future.
Pressure on the negotiating parties has increased considerably after the double ‘no’ in France and the Netherlands, but in two opposing directions: Firstly, to come up with some good news to keep the EU going, which means being flexible and reach an agreement. Secondly, to take voters’ concerns into account, which means standing firm for “the national interest” and use the veto when necessary. So although the Luxembourg Presidency intends to finish the negotiations this month, during the European Council meeting of 16-17 June, it is by no means clear that it will succeed.
Reading the British press and weblogs from the anglosphere, one could easily get the impression that abolishing the British rebate, which limits the UK’s net contribution to the EU budget, is the main issue on the negotiating agenda and that it was put there by a French government in trouble blaming it on the Brits. If only it were that simple, and the UK that important.
The current “negotiating box”, a document published 6 June on the Presidency’s website, outlines the Perspectives’ main budget lines and unresolved dilemmas. Net contributions per country are only one of them, but the most striking thing here is not that Britain is paying more than France, but that both the UK and France pay considerably less than other net contributors. (more…)