'Difficult' negotiations to follow new EU budget proposal

The EC has proposed a total budget for the seven year period of 972.2 billion euros - an increase of five percent - a raise which will be fought by countries such as the UK.

The plan invisages an outlay of 376 billion euros for the so-called Cohension Policy which gives aid to poorer EU nations, of which Poland would be the biggest beneficary, as it is at present.

Farners would receive 372 billion euros in support, though spending on the Common Agricultural Policy (CAP) would fall in real terms and more would be spent on telecommunications and transport infrastructure.

Negotations will now continue among the 27 nations throughout this year and next and the horse-trading will be "difficult", says Poland's European Affairs minister Mikolaj Dowgielewicz.

"It is important to realize that these will be very difficult and lengthy negotiations, so be very cautious about various proposed figures which are to be found in the media at the moment," the minister said after the draft proposals were announced in Brussels yesterday.

The British government said on Wednesday that an increase in the budget of five percent - partly paid for from a new European-wide VAT tax and other measures, would be resisted.

"Britain and the EU's other largest payers made clear in December that the EU budget should be frozen, and we will stick to that," a spokesman in Downing Street said.

"Britain will also oppose new EU taxes which will introduce additional burdens for business and damage EU competitiveness," the spokesman added.

Poland has said it will make the negotiations on the budget draft central to its six-month EU presidency, which begins Friday. (pg)

source: PAP/AFP