EU budget deal must lead to CAP reform - Cable

4.26.00pm UTC (GMT +0000) Fri 2nd Dec 2005

Commenting on the Prime Minister's attempts to broker a budget deal at the EU conference in Hungary, Liberal Democrat Shadow Chancellor, Vince Cable MP said "The bottom line is that any deal must involve reform of the Common Agricultural Policy (CAP) as the Government have promised."

Mr. Cable "It is right Britain should negotiate on the rebate which was entered into when Britain was relatively poorer and the CAP relatively larger, none the less we should strike a hard bargain, we must insist agricultural reform proceeds quickly and comprehensively. Whilst it is right that new members of the EU are not disadvantaged by any potential budget, the Prime Minister must be careful not to give away any leverage Britain has without securing changes to the CAP."

Mr. Cable concluded "The Prime Minister's poor negotiating skills have led to a situation where he has alienated our allies and has been forced into a corner. Complaining about the CAP without explaining how it should be reformed has significantly weakened the UK's position. The Government will have only itself to blame if it misses the opportunity presented by Britain's EU presidency and fails to put together a budget."