European Commission President José Manuel Barroso increased pressure on EU president Britain yesterday to break an impasse on the stalled long-term European Union budget.
Speaking in the European Parliament, Mr Barroso said the EU's policy plans for 2006 would count for little unless there was a deal in December under British chairmanship on the 2007-2013 budget, on which negotiations collapsed in acrimony in June.
"That agreement is the test of whether Europe is on the move," the head of the EU executive told lawmakers. "How can we deliver for our citizens on prosperity, solidarity and security without the means to achieve them?"
Britain blocked a deal in mid-year by refusing to accept a cut in its annual rebate from EU coffers without a commitment to future cuts in farm subsidies that benefit France most.
Critics say that by clinging to a rebate won in 1984 when it was poor and the EU was smaller, London is refusing to pay its fair share for the enlargement of the bloc, which took in 10 new, mostly poor east European members last year.
Unless the mechanism is changed, the British rebate would rise from an average €4.6 billion a year in the current financial period to an average €7.1 billion over the next seven years, part of it funded by the poorest newcomers.
The longer the budget is delayed, the more the new members stand to lose in 2007 because of the long lead time required to programme EU investment in major infrastructure projects.
"We need a fair sharing of this burden. No member state can do enlargement on the cheap," Mr Barroso said. "I trust in the common sense of the British presidency to deliver a fair and balanced agreement next month."
His comments came against a backdrop of growing irritation among EU partners that Britain has yet to put forward any proposals on who pays what into EU revenues, just four weeks before a summit intended to reach agreement on the budget.
Several ambassadors criticised the British handling of the negotiations at a heated meeting last week, diplomats said, demanding that London put forward comprehensive proposals on revenues and expenditure instead of a piecemeal approach.
As a result, Britain has delayed circulating proposals due this week on a mechanism for reviewing all EU spending and income later in the budget period.