EU SUMMIT: The Government was content with the progress of the EU budget talks late last night, believing any final compromise would not significantly affect the key issues Ireland had come to defend.
The Government was particularly concerned to resist efforts by Britain and others to review and reduce Common Agricultural Policy funding before the 2002 deal runs out at the end of 2013. Government sources said last night that while the final deal might refer to the possibility of an earlier change in Cap, such a change would be conditional on unanimity among the 25 member states. France, Austria, Poland and Ireland would all ensure such unanimity was not forthcoming, the sources believed.
The final outcome on rural development, which the Government is keen to defend, was not clear last night. But sources remained hopeful that the British proposal earlier this week that would give Ireland some €250 million more in such funding than last June's failed Luxembourg proposals would remain intact. This still amounts to a cut over the current regime, but not as dramatic as first feared.
Government sources also believe reports that Germany and France had agreed the EU budget could rise to some 1.045 per cent of EU GNP from the earlier proposal of 1.03 per cent would ensure that new member states could receive adequate cohesion funding to develop their economies.
In an interview before the EU leaders began considering the latest British proposals last night, Taoiseach Bertie Ahern said he had consistently believed in the run-up to this summit that a deal was possible. "The only thing that would prevent that is if somebody doesn't really want to be helpful in trying to bring it to a conclusion. It makes no sense for us not to agree this although it could go late into the night."
In an RTÉ News interview he said the German chancellor, Angela Merkel, had been "very helpful" in indicating her readiness to see the total EU budget increased. This would help provide the resources needed for enlargement.
He said the Government had been watching the Cap negotiations and it was a case of "so far so good. We are protecting our particular position and protecting the resources of the 2002 and 2003 agreements and we will stick to that."
The British rebate debate was also "nudging forward", he said.