Blair insists EU deal depends on review of Cap

BRITAIN : British prime minister Tony Blair insisted yesterday he would not accept any deal on a future European Union budget…

BRITAIN: British prime minister Tony Blair insisted yesterday he would not accept any deal on a future European Union budget unless other members promised to review agricultural spending earlier than previously agreed.

But Taoiseach Bertie Ahern, speaking after talks with Mr Blair in Downing Street, stressed that the commencement date for any review of the Cap was already set for 2014. "That is our position," he said.

He said he wanted to help the British presidency and that Mr Blair was right to try to secure agreement. "It will do little good for Europe" if the leaders were unable to agree a budget at next week's Council meeting in Brussels.

Mr Blair, under pressure to strike a deal next week, told journalists later he accepted the entire budget could not be changed overnight. But he said the EU could not be locked into current levels of farm spending until 2013 without a get-out clause.

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"I can't agree a deal that doesn't allow the possibility of a fundamental review for this next financial budget period," he told reporters after two days of consultations with EU leaders.

Mr Blair, who holds the rotating EU presidency, will publish new budget proposals next week after many members rejected his initial plans.

But he said he would not give ground on a refusal to surrender more of Britain's rebate without a commitment from others to cut farm subsidies. Mr Blair said the European Commission should conduct a review of this spending, report back around 2008, and the EU should then have the option of making changes if it wanted to.

His stance makes a deal look difficult. "The overall mood is one of people wanting to reach agreement. But. . . there are still some very tough negotiations ahead because the room for manoeuvre is very limited," he said.

EU diplomats in Brussels said the revised British proposal was expected on Wednesday, the eve of the summit, leaving foreign ministers nothing new to discuss when they meet on Monday.

Additional reporting from PA