Budget battle
The row over the next budget could lead to a serious delay in funding for new members, and, in the longer term, could have further implications for their eurozone aspirations.
The EU last week decided to allow more time for the ratification of the EU Constitution. Many countries, including Ireland, Denmark and Portugal, immediately announced they would postpone referendums on the legislation.
However, the clash over the EU budget presents more immediate problems for new member states. The budget was attacked on a number of fronts. The UK was demanding to hold onto its cherished rebate against massive opposition, which is worth EUR 5.1 (zł.20.65) billion this year alone. The French were opposing agricultural reform. The Dutch and Swedes were on the offensive, as they struggled to reduce their net contribution.
The European Commission says the priority now should be investment in the new member states, but Britain, Sweden and the Netherlands insisted there was no rush. Solutions to the current dispute are few and far between, and on Friday few were optomistic of a reolution, with some officials indicating it could be months or even years before this current furor is resolved.
Without a budget, it is unclear what the EU's next step could be. It may convene an emergency summit before the end of June in a bid to broker a deal. Britain is set to take over the presidency, making it almost impossible for it to act as an independent arbitrator when one of the core issues is its rebate. These delays will block the flow of funds to new Eastern members, particularly long-term projects involving copious planning, and could slow any new entrys to the eurozone. The EU could continue the current budget, based on 2006's figures, or revert to annual budgets, which could complicate the release of funds, and spell a major headache for Poland. (Reuters)
The EU last week decided to allow more time for the ratification of the EU Constitution. Many countries, including Ireland, Denmark and Portugal, immediately announced they would postpone referendums on the legislation.
However, the clash over the EU budget presents more immediate problems for new member states. The budget was attacked on a number of fronts. The UK was demanding to hold onto its cherished rebate against massive opposition, which is worth EUR 5.1 (zł.20.65) billion this year alone. The French were opposing agricultural reform. The Dutch and Swedes were on the offensive, as they struggled to reduce their net contribution.
The European Commission says the priority now should be investment in the new member states, but Britain, Sweden and the Netherlands insisted there was no rush. Solutions to the current dispute are few and far between, and on Friday few were optomistic of a reolution, with some officials indicating it could be months or even years before this current furor is resolved.
Without a budget, it is unclear what the EU's next step could be. It may convene an emergency summit before the end of June in a bid to broker a deal. Britain is set to take over the presidency, making it almost impossible for it to act as an independent arbitrator when one of the core issues is its rebate. These delays will block the flow of funds to new Eastern members, particularly long-term projects involving copious planning, and could slow any new entrys to the eurozone. The EU could continue the current budget, based on 2006's figures, or revert to annual budgets, which could complicate the release of funds, and spell a major headache for Poland. (Reuters)
