BRITAIN: Britain starts its six-month EU presidency today with a promise to promote economic reform and to resolve the budget dispute that saw last month's Brussels summit end in failure.
Foreign secretary Jack Straw said yesterday that Britain would work hard to achieve a budget deal, despite the fact that Britain's rebate was at the centre of the summit row.
"We are going to do everything we can to secure a deal during our presidency. I know this is aiming high Every presidency handles dossiers on which they have a position," he told a group of European journalists at the foreign office.
Mr Straw said that it was essential to agree to review the budget, including farm subsidies and the British rebate, halfway through the next seven-year budget term.
Earlier, chancellor of the exchequer Gordon Brown said the EU and the United States should agree to abolish all agricultural export subsidies in five years.
"I believe there should be a date agreed. I believe 2010 is an acceptable date but I also believe that Europe and America should agree that date together," the chancellor said.
The EU and the US have agreed in the World Trade Organisation (WTO) to phase out agricultural export subsidies but no date has yet been set.
Declaring that he believed in Europe as a "beacon" to the world, Mr Brown said the EU must embrace economic reform to become a "global Europe" capable of competing with India and China.
He said a truly social Europe would encourage economic growth to create jobs and boost prosperity.
"A social dimension that delivers 20 million unemployed has got to be reformed," he said.
Mr Brown said the British presidency would press the case for economic reform, cutting regulation and completing the internal market with measures such as the controversial services directive.
In a white paper outlining the presidency goals, the EU constitution receives little more than a passing reference and Mr Straw said he did not expect much progress during Britain's six months in the EU chair.
Mr Straw said that Britain wanted the EU to approve a negotiating mandate with Turkey so that Ankara will be able to start membership talks on October 3rd.