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Europe blames britain for torpedoing budget deal Original Source Link: (May no longer be active)    http://today.reuters.co.uk/news/newsArticle.aspx?type=topNews&storyID=2005-06-20T170720Z_01_SPI053896_RTRUKOC_0_EU-BRITAIN.xml http://today.reuters.co.uk/news/newsArticle.aspx?type=topNews&storyID=2005-06-20T170720Z_01_SPI053896_RTRUKOC_0_EU-BRITAIN.xml Britain to work with new EU states on budget deal Mon Jun 20, 2005 6:07 PM BST By Madeline Chambers LONDON (Reuters) - Prime Minister Tony Blair sought on Monday to reassure the European Union's newest members that he would try to secure a long-term deal on the bloc's budget after talks last week collapsed in acrimony. Many leaders blame Britain for torpedoing a budget deal at the EU summit which has thrown the bloc into crisis two weeks after French and Dutch voters rejected a planned constitution. The EU's new members, mainly from eastern Europe, are worried they will be deprived of billions of euros in aid. "I understand fully the concerns of the new European countries. They want an agreement. We will do our best to secure such an agreement and to make sure it is one that meets their needs," Blair told parliament. Britain, which assumes the EU's rotating presidency on July 1, refused to curb its annual rebate from the bloc's budget unless there was agreement for a broad reform of farm subsidies, which at the moment largely benefit France. Diplomats say the prime minister stands little chance of clinching a budget deal during his 6-month presidency given the outbreak of hostility, most notably between London and Paris. Blair was unrepentant about rejecting the deal on the table in Brussels. Paris was equally implacable about rejecting any near-term change to the Common Agricultural Policy. "This isn't a budget fit for the purpose in the 21st century," Blair said. "Europe just cannot wait 10 years or more for change." NEW DEBATE Blair, a europhile who favours an economically liberal EU over the Franco-German model of high social protection, has won plaudits among Britain's eurosceptic public for his stand. He goes to Brussels on Thursday to launch a debate on the EU's direction and will tell the European Parliament that the bloc does not have to opt either for social protection or economic efficiency. His spokesman said he would outline the need for a Europe with a social dimension that enhances the economic elements. "He will say it's a false choice to be made between social Europe and a market Europe," the spokesman said. But at the same time, Blair is already wooing potential allies for forthcoming EU battles. He meets Swedish Prime Minister Goran Persson in London on Tuesday. Sweden also rejected last week's budget proposals along with the Netherlands and Finland. A champion of enlargement, Blair is also keen to deflect criticism that the current system means that new, poorer EU members nations are effectively subsidising the British rebate. "There was no way Britain was asking east European countries to stump up more money for this. That wasn't the issue," said Blair who will speak to leaders of new member states soon. Blair faces a tough six months as president of the EU but he is banking on a gradual shift in power within Europe which will bring new leaders who are more receptive to his ambitions.

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