WHO'S GOING TO CARE ABOUT THIS GOVERNMENT SHUTDOWN:

Blair threatens Chirac with veto on Europe budget (David Rennie and Toby Helm in Brussels, 16/12/2005, Daily Telegraph)

Tony Blair threatened last night to veto a deal over the European Union budget unless Jacques Chirac leaves the door open to early reform of the Common Agricultural Policy.

The move followed a tense, 20-minute meeting between Mr Blair and Mr Chirac at which the French president gave no ground in the dispute over farm subsidies. [...]

[M]r Blair's relations with Poland and other new members soured this month when Britain, the current holder of the rotating EU presidency, unveiled a plan for future spending that cut almost £10 billion from aid money intended for east and central Europe.

Outrage increased when it became clear that the British rebate was going to grow substantially during the next budget period, which runs from 2007 to 2013, even with a British offer to give up some £5.5 billion.

The anger drowned out Britain's arguments for the need to find a "fair" deal in which it would pay roughly the same into the EU coffers as France.

Angela Merkel, the new German chancellor, has emerged as a pivotal figure at the summit.

As an east German who has sought close links to ex-communist neighbours, she is seen as perhaps the only leader who can persuade Poland and other eastern nations to take a deal now, and heed Mr Blair's warnings that Britain's position will only harden next year, once the presidency passes to Austria.

French officials said they were asking Britain to surrender all rebate money related to non-farm spending on the new member states. French ministers said this would cost Britain £9.5 billion.

The choice seems simple enough no rebate for Britain/no aid for the East/no subsidies for farms, on the one hand, or no EU on the other.

Posted by Orrin Judd at December 15, 2005 10:39 PM