EU's enlargement funding row sees glimmer of hope

European Union institutions clashed again yesterday over funding for eastward enlargement, but made enough progress to allow this month's signing ceremony for 10 acceding states to proceed as planned.

This meant ratification of the accession treaty, needed for the mostly ex-communist countries to become full EU members, was likely to be secured, the European Parliament said in a statement.

The dispute began when Parliament, angered at a lack of consultation on the enlargement budget, threatened to delay its approval of the treaty opening the EU's doors to the new states.

Although the latest three-way talks between representatives of the Parliament, the Council of EU governments and the executive Commission, ended in deadlock, more headway was made than at a similar meeting that was held last week in Brussels.

"Delegations of the European Parliament and Council were unable to reach full agreement in Athens yesterday on the budget for the accession of ten new member states by May 2004," the European Parliament said in a statement.

"Some progress was made, however, which should allow the full Parliament to vote in favour of accession on April 9."

The next move will come from the Parliament's budget committee, due to meet in Strasbourg on Monday: two days before Parliament votes on the treaty in a full session.

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.

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.

Up to now, the EU's Council of governments has been unwilling to agree to Parliament's request for an extra 600 million euros to adjust the EU budget running up to 2006, which it says will be needed to finance enlargement adequately.