The threat to European Union agriculture subsidies posed by negotiations for a 2007-13 medium-term EU budget appears to be receding, with the union’s UK presidency backing away from demanding tough cuts.
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Instead, prime minister Tony Blair has flown to eastern Europe capitals to persuade their governments to accept cuts to regional aid payments, for which they would have been likely recipients.
A UK government spokesman has confirmed that Britain will propose a budget representing 1.03% of EU GNP, down from 1.14% proposed by the European Commission and 1.06% tabled by the previous Luxembourg presidency. Britain will also offer to cut its much-criticised EU budget rebate.
