EU BUDGET: SWEDEN 'OPTIMISTIC' ABOUT SPENDING REFORM IN 2008-09.
Position | Common Agricultural Policy and the Structural Fund |
While he admitted that overhauling policies like the Common Agricultural Policy (CAP) and the Structural Funds, which together account for the majority of the EU's 100 billion euro budget, had to be agreed unanimously, he said that he was optimistic about progress. He pointed out that the position of France, one of the member states most opposed to CAP reform, might evolve in the future, as it would become a net contributor to the financing of farm policy by 2013. Mr Petersson said that there was widespread support for changes to the CAP but the challenge was to find the best solution. While re-nationalisation of the CAP might be an option, the question would be how to avoid the impact on the Internal Market, he said.
Need for change to own resources system.
The Swedish Ambassador said that the EU needed to find a solution to the very complicated system of own resources. Instead of agreeing a generalised correction mechanism to reduce excessive net contributions, as Sweden had favoured, EU leaders in December had agreed a "system of handouts" which were not sustainable in the long term. Mr Petersson predicted that the current system based on a share of a member state's VAT receipts or...
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