Britain says EU rebate freeze 'unacceptable'

Britain will not accept a proposal by the EU's Luxembourg presidency to freeze its annual budget rebate in the next long-term…

Britain will not accept a proposal by the EU's Luxembourg presidency to freeze its annual budget rebate in the next long-term European Union budget, Tony Blair's spokesman said today.

“What the presidency are proposing is a freeze of the rebate,” the spokesman told reporters after Mr Blair met prime minister Jean-Claude Juncker for talks in Luxembourg. “That is not acceptable to us.“

Mr Juncker is trying to broker a deal on the EU's 2007-2013 budget at a summit of the 25-nation bloc on Thursday and Friday.

Mr Blair is due to meet French President Jacques Chirac later for a showdown on the annual British rebate and EU farm subsidies.