Duitsland bereid tot compromis over EU-budget (en)

Germany has sent a clear signal that it is willing to compromise on the EU budget in order to help push through an agreement in two weeks time.

"Germany is prepared to move. Germany is prepared to make a contribution within the confines of its material resources. But we also expect this from the other countries", said Gerhard Schröder, following a meeting on Thursday (2 June) with the current head of the EU, Jean-Claude Juncker.

In a reference to the political crisis sparked by the double rejection of the EU constitution by France and the Netherlands, the chancellor said that now is not the time for "national egoism".

This is the first time Mr Schröder has signalled flexibility over his demand that the EU budget should be capped at 1 per cent of the EU's Gross National Income (GNI).

Germany's move is a reflection of a general feeling among member states that failure to finalise a budget deal later this month would compound the perception that Europe is in crisis and can no longer take decisions.

The Luxembourg presidency has circulated another budget compromise in a bid get the negotiations moving again.

But a deal is still not going to be easy as there are at least five governments calling for the budget to be capped at 1% of GNI; there is the British rebate to be dealt with and how to divide regional aid between old and new member states.

Aside from this, meetings are continuing on how to proceed after the French and Dutch referendums earlier this week.

President Jacques Chirac is to fly to Berlin on Saturday (4 June) for emergency talks with Mr Schröder, with both leaders wanting ratification of the constitution to continue.

To ratify or not

However, they are facing opposition from the UK which would like to see the process halted, and is set to announce that it will freeze plans to hold a referendum before parliament on Monday.

UK Europe minister Douglas Alexander on Thursday called for France and the Netherlands to indicate what they want to do next and where the constitution stands.

"We would want to hear from the French and Dutch governments why they think their people voted No this week and . . . where that leaves the constitutional treaty", he told BBC radio.

If the UK freezes its legislation on the constitution in parliament, other countries planning to have a referendum are also expected to waver.

According to The Irish Times, Irish foreign minister Dermot Ahern has cast doubt on whether Ireland will hold a referendum on the EU constitution following the "very difficult situation" created by France and the Netherlands.

Denmark is also likely to call its proposed referendum off.

What to do next

Collectively, EU leaders are also trying to draw some concrete lessons from the No votes. According to FT Deutschland, they are set to propose at their meeting on 16-17 June that a social clause in the EU constitution is already used.

This article says that new EU laws must promote high employment, guarantee adequate social protection and promote the fight against social exclusion.

Another idea is that the 15 countries yet to ratify do so quickly rather than dragging out the process, while the Liberals in the parliament have suggested that the remaining countries all have a referendum on the same day.