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Germany fears cost of European Constitution

14/07/2003 13:58
The ink has barely dried on Europe's new draft constitution and already concerns are being voiced in Germany about how much the new changes would all cost.

The German paper Handelsblatt reported over the weekend that finance minister Hans Eichel is worried that it could cost his country billions of euros.

Mr Eichel, already grappling with high employment and with little money in his coffers, has been thrown by an article (III-306) in the new constitution which gives the European Parliament the last say on the Union's budget.

The German finance minister fears that MEPs will make full use of the money allowed within the financial framework - at the moment, EU finance ministers have the last say on the budget and money that is not used flows back to the member states.

In the past, finance ministers have been able to curb some of the European Parliament's wishes but, in the future, MEPs will have the last word, as long as they have a majority of all parliamentarians and 3/5 of all votes.

As Germany is the biggest net contributor to the EU budget - at 23.3% - it will be most affected by this new change.

Handelsblatt writes that estimates put the extra costs for Berlin at up to 1 billion euro per year.

The newspaper also claims that Mr Eichel was so convinced of the problems that this new change would cause that he sent a letter in June to foreign minister Joschka Fischer, Germany's representative in the Convention on Europe's Future.

However, Mr Fischer, says the paper, appeared to be more concerned with details surrounding the creation of a diplomatic service to surround the new EU foreign minister - a post for which Mr Fischer himself has been tipped.

Germany's official position is that the Constitution should not be taken apart in the intergovernmental conference to fine tune it. This conference is due to start in mid-October.

However, reports the paper, it has been indicated to Mr Eichel that changes may be possible.