Talks to agree a new EU budget continued late last night with diplomats predicting that a deal was tantalisingly close as leaders scrutinised a final compromise proposal, write Jamie Smyth and Mark Brennock in Brussels
The proposal would provide a total EU budget of about €862 billion between 2007-2013 and divert more funds to new member states such as Poland, which had strongly criticised earlier offers tabled by current EU president Britain.
It would also involve a further reduction in Britain's rebate from the EU budget, believed to be €10½ billion over seven years, and a comprehensive review of spending on the Common Agricultural Policy (Cap) in 2008-2009. British prime minister Tony Blair said the offer was "fair and reasonable" and it was now up to people to either take or leave the budget proposal.
He said the two days of talks at the EU summit in Brussels had been an extraordinarily complicated negotiation in which 25 nations all had their own particular financial interests.
The critical issues in the negotiations are France's insistence that Britain reduce its rebate from the EU budget, a review of the Cap and offering more money to the 10 new member states to help them grow their economies.
Irish Government sources said they were content with the progress of the EU budget talks late last night, believing that any final compromise would not significantly affect the key issues Ireland had come to defend.
Before the final proposal was tabled, the Taoiseach said the Government had been watching the Cap issue throughout the negotiations and it was a case of "so far so good".