Blair meets Chirac in hope of EU budget deal compromise
Tony Blair emerged from an informal meeting with Jacques Chirac last night convinced his most significant opponent at the EU's winter summit in Brussels shares "a genuine willingness" to find a compromise on the stalled 2007-13 budget later today. Hinting that Mr Blair will make further tactical concessions on Britain's £3.8bn-a-year EU budget rebate, the Downing Street spokesman later said: "We have had to make difficult choices and will continue to do so." With European leaders warning of grave consequences if the EU experiences a second summit collapse of the year, last night's 30 minutes of "good talks" between President Chirac and Mr Blair did not resolve their differences. France is still demanding that Britain cut its rebate by £9.3bn over the 2007-13 budget period - rather than the £5.3bn proposed by Britain - and that the changes should be permanent. Britain is insisting France should agree to a wholesale review of the EU's £566bn budget, including farm subsidies, which could kick in before 2013.
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