Hopefuls unite in push for funds in final talks

Ten European Union candidate countries forged an alliance yesterday to boost their leverage in the expected stormy final stage of membership talks between now and the end of the year.

Foreign ministers of the 10 mostly small east European states agreed in Prague they would coordinate their efforts in tough talks on funding and agriculture, the largest obstacles on their road to the EU which divide even current member states.

Slovenian Foreign Minister Dimitrij Rupel said the so-called Laeken group of candidates, on track to join in 2004, will pressure the union to avoid joining under unfair conditions.

"Our position should not deteriorate after having acceded to the European Union, and this is a very strong message for our friends and colleagues in the European Union," Rupel said.

"We do not want to become an annex to the European Union which would be governed by different or maybe even discriminating principles."

The candidate states are struggling to avoid a situation where they would initially pay more into the EU budget than they would receive in funds, which could happen because of the way EU funds are distributed.

They have also been furious about EU proposals to pay their farmers lower subsidies than existing member states get now.

Czech Foreign Minister Cyril Svoboda said the group agreed to demand higher overall funding after entering the EU than in the pre-accession year, the right to maintain current levels of farm production and a short phase-in period for farm subsidies.

The EU, which spends nearly half of its e95 billion budget on the Common Agricultural Policy, is itself deeply divided on the future of Europe's farm policy.

Countries which are net contributors into the common budget, such as Germany, would like to see cuts in farm subsidies, while beneficiaries like France want to keep the status quo.