Discussions on the EU budgetary framework have been in a stalemate since the June Summit in 2005. "I know some people have been suggesting that we should have spent the whole of our Presidency discussing the budget every week. But the UK preferred to wait until November to kick-start the debate and enter into an intensive negotiation period culminating in the December Council", Jonathan Allen, spokesman to the UK ambassador to the EU, told EurActiv.
In a letter to the EU's foreign ministers sent out on 27 October 2005, the UK Presidency expresses its hope that "a discussion among Ministers at the 7 November General Affairs Council would contribute to its objective of an agreement before the end of the year". The letter goes on to say that "[there] are elements in the negotiating box drawn up at the initiative of the Luxembourg Presidency which continue to enjoy widespread support and could contribute towards an agreement in December. But in order to reach a final agreement, the Presidency believes that it will be necessary to make further progress on three key issues." These issues are:
- The structure of EU spending: referring to a proposal made on 20 October 2005 by Commission President José Manuel Barroso, the UK Presidency proposes to earmark money from rural development funds for meeting the challenges of globalisation.
- Modernising the budget: pointing to the Commission's communication for the Hampton Court Council " European values in the globalised world", the UK Presidency proposes to find agreement on a timetable and on the scope of a budget review.
- Own resources (which stands for the contested issue of member states' contributions to the budget): The UK Presidency avoids any detailed proposals on CAP and the UK rebate by stating that "the principle of fair treatment for Member States of comparable levels of prosperity" is "generally shared" and by proposing to re-start talks from this point .
The UK Presidency wants to consult member states' ministers on a possible solution on these grounds at the 7 November 2005 General Affairs Council. If a solution becomes conceivable, it wants to come up with more detailed proposals at the next General Affairs Council meeting, which will take place already on 21 - 22 November 2005.