Barroso wenst herziening landbouwuitgaven in 2008 om uit budgetimpasse te raken (en) - Main contents

EUOBSERVER / BRUSSELS - Brussels has indicated a shift towards the British stance on the EU budget, pointing to a possibility to review the 2007-2013 spending plan in 2008, which could even lead to changes in the 2002 deal on agriculture.

The commission wants its proposal, distributed among the leaders last Friday (17 June), to be re-considered by the British EU presidency as the possible way out of the current stalemate.

Under the proposal, member states would ask the commission to present a report with concrete proposals on EU policies' reform, at the latest by late 2008.

"On this basis, the Council will take the appropriate decisions, including possible adjustments to the financial perspectives 2007-2013", states the commission's text.

It also adds such "a comprehensive reflection could lead to a reform of all aspects of the budget, taking also into account agreements reached in the context of enlargement in October 2002."

Asked whether that means Brussels actually supports the change in the farming deal later on, its spokeswoman told the EUobserver, "if there is enough support among member states at a later point, it can be considered, but it is not the commission suggesting it should be the case".

Commenting on last week's failure to adopt the EU budget, commission president Jose Manuel Barroso told journalists on Wednesday (22 June), the British EU presidency will be "the first responsible to lead the debate and take initiatives to find a compromise."

But he pointed out it would not be reasonable to immediately call EU policies into question as a complex overhaul would need time, while the budget must be adopted as soon as possible.

Concerning the 2002 deal on the agriculture subsidies, Mr Barroso indicated that it should be respected, saying that Britain itself had signed the "letter of six" last year, a request by the six biggest budget contributors for a lower expenditure ceiling in which was also stated that the farming agreement should not be touched.

The review favoured by London

A review of EU policies and its budget is strongly favoured by Britain.

But during a speech to British MPs on Monday (20 June), British prime minister Tony Blair maintained that a declaration proposing such a review, put on the table by the Luxembourg presidency during the negotiations, was expressed "in language so vague as to be meaningless".

Mr Blair stressed his government would not agree a solution that endorses the 2002 farming package until up to 2013.

Prior to his speech to the European Parliament on Thursday (23 June) - to present his country's plan during the next six month at the EU's helm, the British leader has made several remarks about the UK's annual rebate being an "anomaly" which "has to go".

He wants to see it "go" with the current system of agriculture funding, which makes up about 40 percent of the EU budget.

France, the main beneficiary of the farm subsidies, is unlikely to significantly change its view on the issue, even though during the summit it did agree to cuts worth six billion euro in the agriculture budget, by sharing the previously agreed amount with Bulgarian and Romanian farmers.