Danes set up fiscal plans for applicant countries

EU: The Taoiseach has backed new financial proposals from the Danish EU presidency designed to prevent next week's EU summit…

EU: The Taoiseach has backed new financial proposals from the Danish EU presidency designed to prevent next week's EU summit from turning into a squabble over money.

The Danish Prime Minister, Mr Anders Fogh Rasmussen, said yesterday he had put forward an individual financial package for each of the 10 applicants in an effort to ensure EU enlargement could be given the green light at next week's Copenhagen European Council.

However, with the applicants pressing for more money and Germany resisting the cost of enlargement, it seems unlikely the financial issue will be sorted out before EU heads of state and government meet in Copenhagen next Thursday night.

Poland and other east European applicant states say that agricultural funding and budget rebate provisions are inadequate. However, Germany is leading the objections from existing EU members on the grounds that the money being offered is too generous.

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Speaking in Dublin after a meeting with Mr Ahern, Mr Rasmussen said these packages "contain a number of concessions to the candidate countries while still respecting the EU budget".

Mr Ahern said he supported the Danish compromise which "treats the candidate countries fairly". And in a comment aimed at EU member-states who object to the proposals as too generous he said: "The price of this enlargement is minor compared to the profit we will all get from an enlargement that will pave the way to peace and prosperity on our continent." However, a meeting of Foreign Ministers from EU and applicant states scheduled for early next week is now believed to be unlikely to reach agreement, opening up the prospect of a major haggling session at Copenhagen.

Mr Rasmussen warned that if the candidate countries raise their demands too high "there is a real risk enlargement will be postponed maybe for many years. I think that all responsible leaders will see that". However, Poland, Lithuania, Slovakia, Hungary, Latvia and the Czech Republic have asked the EU to improve its cash offer.

The EU is offering candidates €23 billion in aid for poor regions between 2004 and 2006, and phasing in, over a decade, the EU's income support to farmers from the level of 25 per cent of the amount now received in the EU.