EU: European Commission president José Manuel Barroso will unveil proposals today designed to break the deadlock over the EU budget.
In a speech to the European Parliament, Mr Barroso is expected to propose a multibillion euro fund to help cushion the effect of globalisation on certain regions and workers in industrial sectors exposed to competition. He will also offer new wording calling for a fundamental review of EU spending during the 2007-13 EU budget period, in an effort to meet British concerns that too much of the EU budget is spent on agriculture.
The concept of a €7 billion globalisation fund was first floated last year by the commission. However, it was dropped from compromise proposals put forward by the Luxembourg presidency in June. The June talks on the budget fell apart when the British and French clashed over agriculture spending and the British rebate.
Mr Barroso's proposals are an attempt to bridge the gap between Paris and London, which threatens to derail new attempts to get a budget deal planned for December.
A commission spokeswoman said Mr Barroso would put ideas on the table in a different way than he had before. She said the commission would provide new mechanisms and criteria to help meet the concerns of member-states that previously rejected proposals.
Mr Barroso's proposal for a globalisation fund comes in the wake of strong criticism of the commission earlier this month by French president Jacques Chirac. He accused the commission of doing nothing to protect workers when the US multinational Hewlett Packard announced more than 1,000 job cuts at its French operation.
Getting a breakthrough in the current impasse over the budget during the British EU presidency is seen as vitally important, particularly among the 10 new member- states.