Candidates leave EU summit happy despite farm snag

Membership candidates left the European Union's summit in Seville over the weekend confident that their bids to join the Western bloc in 2004 are well on track despite internal EU rows over enlargement costs.

The 10 mostly eastern European applicants played down remarks by German Chancellor Gerhard Schroeder, who cast doubt on a pledge made by EU leaders at the summit to forge a key deal in November on farm subsidies for newcomers.

The mostly ex-communist candidates took heart from the EU's declaration that membership negotiations could be wrapped up in December and the accession treaties signed in the spring, 2003.

"I am not afraid of any delays in enlargement. We heard again that it will take place in 2004," Polish Prime Minister Leszek Miller told a news conference, commenting on disputes among some EU members over farm aid for new member states.

Chancellor Gerhard Schroeder, facing a stiff challenge from conservative opponents in a September 22 election, signalled a reluctance to commit to any tight timetable on resolving the issue involving billions of euros from German taxpayers.

The Seville summit vowed to "communicate all the items lacking in the financial package to the candidate countries in early November," but Schroeder said he could well take his decision later, even in December.

Some diplomats from the candidate countries said they feared that the EU may force them to accept unfavourable entry terms by imposing a very tight negotiating timetable.

One said Schroeder might want to leave some key decisions on aid for new members until the EU summit in Copenhagen on December 12-13, leaving candidates no bargaining time, with a "take it or leave it" approach.

But several eastern European leaders put a brave face on the prospect. "We are not worried," Hungarian Prime Minister Peter Medgyessy said, echoing remarks of Czech Premier Milos Zeman.

The controversy focuses on direct payments, a generous and controversial income support tool for EU farmers, with candidates warning that their voters might not accept EU entry unless they are offered a good deal.

Germany and some other states fear that the bloc's 98 billion euro ($95 billion) annual budget, will be excessively strained if new member states receive direct payments without cutting overall costs of the EU's farm aid policy.

The EU's executive Commission has proposed phasing in direct payments for newcomers over 10 years, starting from an initial level of 25 per cent of the amount granted to farmers in current member states, but the candidate find this proposal too mean.

Some diplomats said that while Germany, the EU's main net payer, might discuss direct payments for new members, it would still insist that enlargement is coupled with a cost-cutting reform of the EU's Common Agricultural Policy (CAP).

France and other CAP beneficiaries are expected to oppose. The Seville summit reiterated that the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia and the Mediterranean islands of Cyprus and Malta could join the EU in 2004.

In their declaration, the leaders also praised progress made in the accession talks by Bulgaria and Romania, which are seen joining later in the decade, and said a more precise timetable for their accession could be given in December.

Bulgaria and especially Romania were delighted. "It is for the first time that we receive some timetable for accession," Romanian President Ion Iliescu said.