Blair must give up his rebate

9.56.40am GMT Fri 2nd Dec 2005

Graham Watson, leader of the European Liberals and Democrats in the European Parliament, is calling on Tony Blair, as President of the EU Presidency, to bite the bullet and agree to renegotiate the terms of Britain's rebate in order to reach a deal on the multi-annual budget by the end of the year.

"The British rebate is the key to unlocking a deal on the €871 billion budget for the next seven years [figure proposed by the Luxembourg Presidency]," said Graham Watson today. "Blair has just two weeks left to strike a deal between 25 Member States on a multi-annual budget that will fund EU policies between 2007 and 2013," he said.

"The rebate, worth some €5bn a year was justified 20 years ago, but much has changed since and it is now an anachronism. Blair is right to want to see wider reform of the EU budget, but he needs to make the case for further reform of the CAP in a planned and measured way."

"Europe needs a budget deal in the coming fortnight and Blair has both the means and the responsibility to achieve it. If he is seeking to cut previously promised funds to the new Member States, the least he could do is freeze the rebate at current levels to avoid the likes of Poland and Latvia contributing to Britain's annual windfall," concluded Watson.