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Letter of the President of the Republic to the Heads of State and Government of the European Union and the President of the European Commission

Ljubljana, 10/25/2005  |  press release


Prior to the informal meeting of EU Heads of State or Government, the President of the Republic, Dr Janez Drnovšek, sent a letter to the Heads of State and Government of the European Union as well as to Commission President José Manuel Barroso, in which he explained his views on the solution to the problems that concern the future of the European Union. In his letter President Drnovšek wrote:

1. The ratification of the constitution must continue. Too much of Europe's energy and good will has been invested in this project to abandon it now. Any alternative would involve starting again from scratch and wasting even more time, while the same risks attached to ratification would remain. The Union needs an institutional framework of this kind in order to function, and so do the future enlargements. I therefore propose to the heads of state and government that they engage in this project with renewed vigour. Let us convince the citizens of Europe that European peace, prosperity and global influence depends on our ability to move forward and take this step. Then let us return to the citizens of France and the Netherlands and find a satisfactory solution through constructive dialogue.

2. The CAP is a vital element in reaching agreement on the 2007–2013 EU financial perspective. It must be amended to reflect that times have changed and new demands must be satisfied. I am aware that this cannot happen overnight, but we can take some important steps now. I propose that we reduce the financing of direct subsidies from Pillar 1 of the CAP from 100% to 75%. Countries that want to retain 100% financing could do so from their national budget. At the same time I propose that some increase be made in rural development funding, especially for organic agricultural products. That must become the main priority for European agriculture. Alongside that, I think there should be extra funds available to develop non-agricultural activities, such as small businesses in agricultural areas that preserve rural areas and rural employment.

3. I support the creation of the globalisation fund that the Commission President José Manuel Barroso has spoken of, and I support even more funds being allocated to it. The fund would help those European regions particularly affected by job losses caused by the pressures of global competition. Europe is under pressure from cheaper goods from developing countries that are cheap because employment, social and environmental standards are not respected. The fund is justified as long as these standards do not approach European levels. The EU should use international forums to persuade these countries to improve their standards to a level conducive to human dignity. This will also reduce migratory pressures from these countries. It is vital in this regard that the Union does everything possible to make global trade and financial relations more balanced so that countries can develop and live with dignity. The World Trade Organisation is currently at a critical point, with negotiations on the Doha Round set for conclusion by the end of this year. The EU must accept the US challenge and support the same reductions or removal of export subsidies, import tariffs and quotas.

4. Within the next financial perspective the EU must commit more funds to meeting the Lisbon Strategy objectives on research, education and promoting competition.

5. In order to balance financial relations within the Union, the United Kingdom must commit to the gradual removal of the British budget rebate over the course of the 2007–2013 financial perspective.

This and the reduction in agricultural subsidies referred to in Point 2 would provide the EU with the funds needed to finance its current priorities, without having to increase its budget.
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