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Blair to offer more money to eu in budget Original Source Link: (May no longer be active)    http://www.bloomberg.com/apps/news?pid=10000085&sid=a4Sf9OzbZdQg&refer=europe http://www.bloomberg.com/apps/news?pid=10000085&sid=a4Sf9OzbZdQg&refer=europe Blair to Offer to Pay More to EU in `Final' Budget Proposal Dec. 16 (Bloomberg) -- U.K. Prime Minister Tony Blair said he will offer to pay more to the European Union, bowing to pressure from France, Germany and eastern Europe in a bid to break a deadlock over the bloc's budget. Blair, chairing EU budget talks in Brussels, said he will soon make a ``final'' proposal for the 2007-2013 budget in which Britain will pay its ``fair share'' to provide financial aid for poorer countries in eastern Europe. ``It's a fair and reasonable package,'' Blair told reporters without giving figures. ``We're keeping our fingers crossed.'' A fight between Blair and French President Jacques Chirac doomed the EU's last budget conclave in June. A stalemate today could add to doubts over the EU's economic prospects and deprive EU newcomers such as Poland of money needed to boost living standards. Blair was under pressure to boost total spending from an earlier proposal of 849.3 billion euros ($1 trillion). German Chancellor Angela Merkel, seeking to help broker an accord at her first EU summit, proposed 862.5 billion euros, compared with the failed June package of 870 billion euros. Shortly before Blair put out his proposal, Chirac hailed the ``serious progress'' made today and stiffened his demand for Britain to boost its contributions to finance aid to eastern Europe. `Significantly Closer' ``Not everything has been fixed but little by little we are moving to a solution,'' Chirac said. Polish Prime Minister Kazimierz Marcinkiewicz had also scented an agreement, saying earlier the EU has come ``significantly closer to reaching a compromise. It seems that the new budget will be higher.'' The summit is Blair's last chance to revamp EU finances before handing over the presidency to Austria on Jan. 1. Blair would increase Britain's payments by making do with a smaller rebate from the EU budget, scaling back a money-back guarantee won by Margaret Thatcher in 1984 when Britain was one of the poorer countries in the bloc. The U.K. is now the sixth- richest country in the EU. Britain countered that it would only pay more in if the EU steered a smaller share of the budget toward subsidizing agriculture, which largely benefits France. French President Jacques Chirac ruled out cuts in farm aid. ``The costs of a non-agreement are too high,'' European Commission President Jose Barroso said earlier. ``Everybody has to move, not just Britain.'' Last Updated: December 16, 2005 15:52 EST

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