EUROPEAN COMMISSION: BARROSO TO MEET SCHRODER NEXT WEEK.

Medium-term financial resources for the EU are also expected to surface in a discussion of the EU's financial perspective, or budget, for 2007-13. Germany is one of six net contributor member states who want the budget limited to 1% of EU gross national income (GNI), equal to 814 billion euros for the period in terms of payments. The Commission wants 1.14% of GNI, or 928 billion euros).

Elsewhere, Schroder and Barroso will discuss the EU's beleaguered draft directive on liberalisation of services. The German Chancellor initially supported the Commission's proposal, which seeks to remove barriers to companies wishing to provide services in other member states. He had said it would help achieve a "truly open internal market for services that would serve millions of companies in Germany alone," but has recently changed his position. He now says the directive "could not be implemented in its current state." This has prompted speculation that Mr Schroder may join French...