EU BUDGET: ECOFIN COUNCIL STILL AT ODDS OVER MEDIUM-TERM FINANCIAL FRAMEWORK.

Spain's Minister Pedro Solbes criticised the British rebate and the generalised corrector mechanism since it is "too complex". Denmark's Thor Pedersen also rejected the generalised corrector mechanism preferring to rectify budgetary imbalances by restricting EU spending. Slovenia's Minister, Dusan Mramor, rejected the creation of a European tax and the generalised corrector mechanism which imply "poor EU countries paying for their richer brethren".

Britain's Chancellor Gordon Brown drew attention to the absence of a consensus on the creation of a European tax. He believes the financial perspective debate should focus on receipts rather than EU spending to avoid protracted discussions on the volume of the Budget. The introduction of a generalised corrector mechanism should be discussed in the context of the final agreement, in any case. Finally, he defended the British rebate pointing out that Britain does not benefit from the Common Agricultural Policy (CAP) or structural policy in net terms. "We receive half of what countries with similar GDP receive", he explained.

Portugal's representative suggested the current system is satisfactory. Portugal rejects the complexity of a generalised corrector mechanism and believes it is "premature to consider a new own resource" like a tax.

German Minister Hans Eichel described current burden-sharing as unfair. Whilst calling for a generalised corrector mechanism, he recalled that even with its introduction "those who contribute most will continue to do so, even at a lower level".

Estonia is opposed to the introduction of a European tax and called for the gradual but significant abolition of Britain's rebate. Nicolas Sarkozy for France, expressed a readiness to enter the debate on a...