France joins list opposing EU budget

France has joined a growing list of EU governments threatening to veto the bloc’s next long-term budget, turning up the heat at the start of divisive bargaining over a €1tn spending plan.

The warning from Paris echoed similar threats from Denmark and Britain, where prime minister David Cameron came under pressure from opposition politicians and rebels in his own party to ditch his call for a real-term freeze in EU spending and push for outright cuts.

The French ultimatum was sparked by a proposal to trim farm subsidies — jealously guarded by France — as part of a compromise from the Cypriot EU presidency to cut the 2014-20 budget by over €50bn.

Even after the proposed cut, agriculture would remain the largest spending area, with deeper cuts hitting infrastructure investment in the bloc’s poorest regions as well as research.

“We oppose the proposed reduction,” said Bernard Cazeneuve, France’s European affairs minister.

“France would not support a multi-annual budget that does not maintain the funds of the common agricultural policy.”

The backlash was also a warning not to cut the proposed farm budget further, after Cyprus said much deeper reductions than those outlined so far would be needed to clinch a deal.

Despite support from Ireland and Austria, France’s position puts it on a collision course with Germany, Britain, and other net contributors looking to slash the overall spending blue-print by €100bn-€200bn.

EU diplomats have warned privately that further cuts are likely to hit agriculture hardest.

A Franco-German deal to maintain the nominal level of farm spending served as the basis for agreement on the last long-term EU budget for 2007-13.

But Michael Link, the German deputy foreign minister, hinted Paris could be fighting a losing battle this time, saying Berlin would continue to press for deeper overall cuts as part of a “modern budget” that prioritises economic growth and competitiveness.

The prospect of Britain blocking a deal loomed larger yesterday, as Cameron saw his room for manoeuvre at the budget talks shrink in the face of a parliamentary revolt.

“This government is taking the toughest line in these budget negotiations of any government since we joined the European Union,” Cameron told parliament ahead of a non-binding vote on the EU budget talks. “At best, we would like it cut, at worst frozen, and I’m quite prepared to use the veto if we don’t get a deal that’s good for Britain,” he said.

Reuters