EU clash on enlargement funding row

European Union institutions clashed again yesterday over funding for the bloc's eastward enlargement, but next month's signing ceremony for 10 acceding states will not be jeopardised, the European Commission said.

The dispute began when the European Parliament, angered at a lack of consultation on the enlargement budget, threatened to delay ratification of the treaty admitting the mostly ex-communist countries to the 15-nation EU.

The latest three-way meeting between representatives of the Parliament, the Council of EU governments and the executive Commission, ended in deadlock yesterday.

Another session is slated for next Tuesday in Athens, Commission spokeswoman Elisabeth Werner said.

Parliament says an annex to the treaty specifying the amount of EU subsidies the new members will be entitled to receive until 2006 was drawn up without its consent.

This violates a 1999 decree giving Parliament a right to approve budget-related decisions, it contends. The 10 acceding countries are expected to join on May 1, 2004.

A deal needs to be struck soon since Parliament is supposed to approve the treaty on April 9.

EU president Greece has scheduled a signing ceremony for the acceding countries in Athens on April 16. The group has now begun holding referendums on their accession, with Malta and Slovenia already backing accession.

The main problem is a reference to ceilings for additional enlargement-related budget expenditure, not only for the period 2004-2006 but also for farm spending for 2007-2013.