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EU reaches budget deal

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Saturday, December 17, 2005 The leaders of the European Union have struck a deal on the 2007-2013 budget. Negotiations were characterized by host country's Prime Minister Tony Blair as "extraordinarily complicated".

The biggest issues were different views between France, the UK and rest of the EU. UK wanted to keep it's high membership discount, negotiated before economic growth made it one of the richest members, while other members wanted it to participate with relatively equal net payment. France's primary issue was maintaining farming subsidies. Rest of the Europe was mostly interested in modernizing European economy by decreasing both UK's discounts and France's subsidies. Germany appeared as a pulling force between France and UK to secure the deal.

France continues to receive it's highly criticized subsidies. The UK gave up 10.5 billion euros in exchange for a review of farm subsidies in 2008-2009, but the net membership discount will actually increase. Small member states such as Sweden increased their role as largest net payers in relative to output.

Key features in the reached deal:

  • Total budget will be 862.36 billion euros, equaling to 1.045% of the EU's total GDP
  • Development aid will be 157 billion euros
  • Farm budget will be 293 billion euros

Most see the resulted budget as a poor comproromise, but necessarily for the state of union and financial planning in the new member states.

Sources

[edit]
* "Early morning deal ends year of horsetrading" — Financial Times, December 18, 2005

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This page is archived, and is no longer publicly editable.
Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

The text of this article is licensed under the terms of the Creative Commons Attribution 2.5 License
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