BRUSSELS, Dec 5 (AFP) - The new European Commission hopes to exploit divisions among Europe's richest countries to push through an agreement on the EU's next medium-term spending round as early as next June, officials say.
New commission chief Jose Manuel Barroso is also counting on the negotiating skills of Luxembourg Prime Minister Jean-Claude Juncker -- who takes over the EU's presidency on January 1 -- to secure a rapid deal on the 2007-2013 budget.
Both Barroso and Juncker agree that the European Union needs to finish the haggle over EU cash quickly, notably to avoid the issue being complicated by electoral considerations and referenda on the EU's new constitution.
"We are aiming for a window in the middle of 2005, under the Luxembourg (EU) presidency," said an EU official familiar with the issue.
"Jean-Claude Juncker wants an agreement in June," said another EU source, adding that the Luxembourg leader is working on the assumption that there will be legislative elections in Britain in May.
London is due to take over the EU reins in June, and taking into account its refusal to surrender its famous EU rebate no deal could be expected under a British EU presidency. So if there is no deal in June the issue would be pushed back to 2006, imposing too tight a deadline for an agreement, Brussels says.
Six key net contributor states -- Britain, France, Germany, Austria, the Netherlands and Sweden -- called last December for a cap of 1.0 percent of gross national income (GNI) for the EU's next six-year spending round.
Barroso's predecessor Romano Prodi responded that the EU needs to put its money where its mouth is or risk being unable to fund key projects after its "big bang" expansion from 15 to 25 states this year, with more waiting in line.
Barroso, who finally took office last month, has taken up Prodi's call for a budget of 1.14 percent of GNI.
His new commission is due to discuss the EU budget negotiations -- known as the "financial perspectives" dossier in EU-speak -- this week. But new EU budget commissioner Dalia Grybauskaite set out her position firmly last Friday.
"One percent does not represent a freeze. It represents a substantial cut," she said, adding that "those calling for a cut to one percent have not explained how they would achieve this figure.
"The only way would be to cut existing programmes, to abandon promises to extend action into new areas, or both. More Europe for less money is simply not possible," she said.
According to the EU official close to the talks, "the club of 1 percent will remain united until the time when they have to say where cuts will be made. On this point, France and Germany have different points of view."
"We have to split the group up," he added, saying that the commission is counting on the support of the other 19 EU member states.
A key point is whether budget cuts will hit the EU's long-controversial Common Agricultural Policy (CAP) -- something unacceptable to French President Jacques Chirac.
"If he has to choose between one percent and the CAP, he will choose the CAP," said the EU official.
The commission can also count on the support of EU lawmakers, who are if anything more ambitious than the EU executive in terms of EU spending.
Last week the European Parliament adopted a resolution calling for the EU to agree a deal on its 2007-2013 budget "preferably under the Luxembourg (EU) presidency" which ends next June.
12/05/2004 03:03 GMT - AFP