EU: European Union foreign ministers have failed to agree a common position on how to pay for EU enlargement in advance of today's meeting of EU leaders in Brussels. A foreign ministers' meeting in Luxembourg yesterday did not even discuss the most controversial funding issue - the extension of direct payments to farmers in the candidate countries.
Denmark's Foreign Minister, Mr Per Stig Møller, warned that failure to find agreement on the financial package in Brussels could delay the admission of 10 new member states.
"There must be time for the Commission and the presidency to enter substantive negotiations with the candidate countries. . . This is important in order not to endanger the ratification process in the candidate countries," he said.
The ministers approved the Commission's proposal to admit Poland, Hungary, the Czech Republic, Slovakia, Slovenia, Lithuania, Latvia, Estonia, Cyprus and Malta to the EU in 2004.
They also agreed a common position on transit arrangements to and from Kaliningrad, the Russian enclave that will be surrounded by EU member states following enlargement. This leaves the funding of enlargement as the only issue of substance to be negotiated by the leaders in Brussels. Most member states back the Commission's proposed financial package, which includes the phased introduction of direct payments to farmers in the candidate countries.
It also sets out the level of structural funds to be paid to new member states until 2007 and creates a compensation mechanism to ensure that no candidate countries become net contributors to the EU budget as soon as they join and that none are worse off in 2004 than in 2003.
The EU's current four net contributors - Germany, Britain, Sweden and the Netherlands - argue that the package was too generous. They agreed yesterday that no new member-state should become a net contributor on accession but they reject the proposal to ensure that the candidate countries are better off in 2004 than in 2003. Germany is leading the resistance to extending direct payments to farmers in the candidate countries. Berlin wants a commitment from other member states to reform thoroughly the Common Agricultural Policy before it compromises on extending direct payments.
France, the most powerful defender and the main beneficiary of the common agricultural policy, is resisting change but EU diplomats hope that a meeting between the French and German leaders tomorrow morning could produce the outline of a compromise.
Mr Møller stressed that the Commission's proposals were consistent with spending limits imposed on the EU in 1999, which remain valid until 2007. He said there was no excuse for EU leaders to fail to agree on the funding package before Friday.
The enlargement commissioner, Mr Günther Verheugen, yesterday congratulated the Minister for Foreign Affairs, Mr Cowen, on last week's referendum result.
"You saved my life," he said.
