The Guardian

Brussels, July 20:

Tony Blair today won crucial support for his campaign to undertake a root and branch reform of the EU’s 68 billion sterling pounds budget after his Dutch counterpart endorsed Britain’s attack on farm subsidies.

To the delight of Downing Street, Jan Peter Balkenende criticises the “rivers of subsidies flowing” to farmers. Balkenende, whose premiership was undermined last month when the Netherlands rejected the EU constitution, writes in today’s Guardian that European leaders must reform their ways after the “rude awakening” of the Dutch and French no votes.

“Do we want an EU that focuses primarily on consolidation of vested interests, or one that pursues reform and displays solidarity with the less prosperous member states and the world around it?” Balkenende asks. “European agriculture is of great importance, and we must not overlook farmers and their families. But the current system, with rivers of subsidies flowing out of Brussels, cannot last until late in the 21st century.”

Balkenende’s intervention was welcomed in Downing Street, which is fighting to reach agreement on the EU budget during the British presidency of the EU, which ends in December.

With feelings still running high in the wake of the collapse of the European summit last month, after a public bust-up between Britain and France, Paris is refusing to give ground.