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Future of Europe EU budget/CAP – Visit to Portugal – Interview given by Catherine Colonna, Minister Delegate for European Affairs, to the Portuguese newspaper “Publico” (excerpts) Lisbon, November 15, 2005 Q. – Apparently, the negotiations on the European Union 2007-2013 Financial Perspective aren’t progressing. Do you believe an agreement is still possible at the December European Council?
THE MINISTER – Yes, I think so, because an agreement is in Europe’s interest. I discussed this at length today with our Portuguese counterparts. It’s both necessary and urgent to get an agreement, using the Luxembourg proposal as a starting point and trying to adjust it. Britain has the heavy responsibility of taking things forward, as is the job of a presidency. At the June summit, 20 of the 25 countries accepted the Luxembourg proposal. We’re now awaiting concrete proposals from the British.
Q. – You talked about every country making adjustments. What steps is France prepared to take?
THE MINISTER – Talking about a basis for negotiation implies that there can be developments. A number of countries think it possible to finance the existing common policies, allocate more money to a number of policies we want to develop and also finance the enlargement. The discussion is focusing on innovation and research. In the Luxembourg proposal the budget for this was already up 34%. We’re proposing to improve this basis for negotiation using a number of ideas which were put on the table. At the last European Council at Hampton Court (27 October), President Chirac proposed using a European Investment Bank facility to provide more funding for innovation and research. Moreover, discussions are going on at the Commission on ways of spending existing funding on this. We haven't got closed minds here.
Q. – But France's mind is closed when it comes to the Common Agricultural Policy (CAP). A European Commission compromise proposal for this budget is for there to be a clause to organize a review of CAP spending, with the review starting in 2009. Can France accept that? Do you think the British Prime Minister also needs to save face?
THE MINISTER – We fully understand it, especially as that was what the Luxembourg presidency envisaged, but Britain regrettably refused.
Q. – But there wasn't a CAP review clause…
THE MINISTER – In the final Luxembourg proposal there was a general revision clause, but you are right, there are two important elements for reaching an agreement: taking up the Luxembourg proposal as the basis for negotiation and putting in a clause to review in depth the structure of the budget receipts and expenses with 2010, or at any rate on a date to be agreed, as the time to start a review. We think it will take several years to get an agreement on this revision, with the goal of implementing it in 2014.
Q. – You think that's enough to get the British to agree?
THE MINISTER – What I know is that the CAP has been reformed several times, that it accounted for 70% of the budget in 1984 when Margaret Thatcher demanded her "rebate", 60% a few years later, 40% today, 33% in the Luxembourg proposals which we ourselves have accepted. The CAP is costing less and less of the EU budget whilst the British rebate is costing more and more and it’s never been reformed; so it's time to do it. (…)./.
Embassy of France in the United States - November 18, 2005
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