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CLIMATE CHANGE ECONOMIC POLICY NATO DEFENCE MEETING EU executive proposes disaster Union struggles for unified stance EU reinforcements in Afghanistan prevention strategy Page 5 on crisis Page 6 for limited time? Page 10 EUROPOLITICS The European affairs daily Tuesday 24 February 2009 N° 3700 37th year FOCUS GENERAL AFFAIRS COUNCIL Five billion euro plan: EU appeals to Decisions delayed until March Israel By Célia Sampol margins of 2009. Six countries had already By Eric van Puyvelde shown reluctance on this point during the The Council of Ministers failed to reach last Ecofin Council (Germany, the United an agreement on ways to finance the €5 Kingdom, Italy, Sweden, the Netherlands The future Israeli government must billion included in the European Commis- and Austria) – arguing that it was not possible relaunch the peace process with the sion’s economic recovery plan or on the final to dip into the margins of the 2008 budget Palestinians, urged the EU foreign min- list of projects to be financed. However, the because that period was already over and that isters at their Council, on 23 February debate continues and decisions have been in order to do that it would be necessary to in Brussels. Things could be rough, postponed until March. revise the financial perspectives. acknowledged Alexandr Vondra, the That is what emerged from the General Czech deputy prime minister and Affairs Council of 23 February in Brussels. SOUNDING OUT PARLIAMENT current Council president. Some are On the actual projects, a small number of But contagion has set in and most member concerned about the attitude of the delegations remain dissatisfied with the latest states now think that this “is not the right path right-of-centre government to be put list put forward by the Commission, which to follow”. The Commission could therefore together by Benjamin Netanyahu. includes €3.75 billion for the energy sector be forced to put forward another financial Swedish Minister Carl Bildt denounced and €1.25 billion for rural development. package. On behalf of the EU Presidency, the conditions Netanyahu has imposed Portugal, Spain, Greece and Bulgaria do not the Czech deputy prime minister in charge – which are hardly favourable to the think there is enough geographic balance. of European affairs, Alexandr Vondra, asked peace process - on the parties that Germany also acknowledges that a “new Coreper to “look at the financing options may join a national unity government list is needed”. Therefore there still is not any for the 2009 and 2010 budgets”. Austria asks with his party, Likud. agreement but “the viewpoints are increas- that those projects that can be financed be However, many EU foreign ministers ingly converging,” said a Council source, launched now and considers that the total called for the peace process to be who explained that the decision is sent back of five billion will depend on “available renewed without speculating on the to the Committee of Permanent Representa- funds”. At this stage, it can not be said how makeup or intentions of the Netanyahu tives (Coreper) and then to Council, proba- much money will be available in the mar- government. EU foreign policy chief bly during the General Affairs session, on 16 gins of 2010 given that the Commission’s Javier Solana expressed a view shared March, just before the spring EU summit. preliminary draft budget has not even been by most, namely that it is too early to The heads of state and government could presented yet. issue an opinion on the Israeli govern- discuss it during their informal meeting, on Before starting talks with the European ment, which still has to be formed and 1 March in Brussels, focused on the crisis. Parliament (co-legislator on budgetary mat- “with which we are ready to cooper- Regarding the €5 billion anticipated for ters), the Presidency said it would first need ate”. That view was echoed by External these projects, as a contribution from the EU to have more discussions with the Council. Relations Commissioner Benita Fer- budget to tackle the crisis (see Europolitics However, given that European elections rero-Waldner, who stressed the need 3699), the Council seems to have completely are approaching and in view of the need to “give the government time to form”. abandoned the Commission’s idea of taking to react to the crisis, it suggested begin- €3.5 billion from the margins of the 2008 ning to informally “sound out” the EP on budget – the remainder coming from the uncontroversial aspects. n Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info EUROPOLITICSTHE EUROPEAN AFFAIRS DAILY The centrepiece of EU news www.europolitics.info ❏ Yes, I would like to subscribe to EUROPOLITICS daily: ❏ 6 MONTHS, 112 issues (paper version) + unlimited online access at the price of €890 (1). 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Rue d’Arlon 53 / B-1040 Brussels or by fax to: +32 (0)2 732 67 57 AP08 EUROPOLITICS N° 3700 Tuesday 24 February 2009 3 Contents N° 3700 Top Stories CLIMATE CHANGE ECONOMIC POLICY NATO DEFENCE MEETING EU executive proposes disaster Union struggles for unified stance EU reinforcements in Afghanistan prevention strategy Page 5 on crisis Page 6 for limited time? Page 10 Institutions Financial services, banks,