EU Budget Reform

Jean Claude Junker is working away trying to get a deal before next weeks summit. Next on the list: Tony Blair:

Tony Blair, prime minister, is coming under intense pressure to give up part of Britain’s rebate to the EU budget as part of a deal that would see big cuts to European rural subsidies………..Luxembourg, which currently holds the EU presidency, knows that Mr Blair will only move on the rebate if Mr Chirac agrees to cuts in subsidies for his country’s farmers.”

Difficult to say what will happen. It is clearly important for the credibility of the EU to have a rapid ‘success’ somewhere. Perhaps a deal on the budget would help. Plus, if Blair puts this behind him, he will be able to take a much stronger line on other issues during the UK presidency.

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About Edward Hugh

Edward 'the bonobo is a Catalan economist of British extraction. After being born, brought-up and educated in the United Kingdom, Edward subsequently settled in Barcelona where he has now lived for over 15 years. As a consequence Edward considers himself to be "Catalan by adoption". He has also to some extent been "adopted by Catalonia", since throughout the current economic crisis he has been a constant voice on TV, radio and in the press arguing in favor of the need for some kind of internal devaluation if Spain wants to stay inside the Euro. By inclination he is a macro economist, but his obsession with trying to understand the economic impact of demographic changes has often taken him far from home, off and away from the more tranquil and placid pastures of the dismal science, into the bracken and thicket of demography, anthropology, biology, sociology and systems theory. All of which has lead him to ask himself whether Thomas Wolfe was not in fact right when he asserted that the fact of the matter is "you can never go home again".