17 December 2005
European leaders have agreed the future EU Budget after successfully concluding their Council meeting. Tony Blair said they had avoided a "very severe crisis".
The UK’s rebate remains in full, other than on investment for economic development in the new member states, the PM announced.
Mr Blair said the purpose was "to engage in a large switch of resources from the wealthy countries, the original European 15, to the new accession countries" to help them develop their economies and boost prosperity for all EU nations.
The EU agreed to review all its spending in 2008-2009, including the Common Agricultural Policy.
And the PM pointed out that for the period 2007-13 the UK and similar-sized countries will come into parity on net contributions for the first time. The overall Budget will also increase slightly. Mr Blair said the two days of talks had involved "amazingly complicated negotiations".
"This is an agreement that allows Europe to move forward, it allows us to demonstrate the right solidarity with the new member states, and for those of us that have championed the enlargement of the European Union this is an important point."
When asked whether the Budget represented a "good deal for Britain", Mr Blair insisted it did. The UK would get the economic development of the new member states, a retention of the rebate on all other spending, and equality with other large members of the Union in terms of net contributions.
The UK has held the Presidency of the EU since July and will hand over to Austria on 31 December.
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