DELORS REPORTS STRONG OBJECTIONS TO EC CASH PLAN
European Community
Commission President Jacques Delors said he met with strong
objections from some EC government heads to his radical plan
for changes to Community financing.
    In a speech to the European Parliament, Delors said some EC
leaders told him on a recent tour they could not easily allow
additional resources for the bloc when they were themselves
pruning their own spending.
    Others called for major spending cut in the EC's
controversial farm policy in order to free money for regional
and social development.
    The Parliament later registered its support for the Delors
plan by voting to approve his continuation in office for a
second two-year term.
    Delors has proposed that payments by member states to the
EC should be based on their gross national product instead of
on the amount of value added tax they receive. He said this
would increase EC resources and provide a fairer system of
sharing the financial burden.
    He told the Parliament that in reply to complaints about
increased payments, he had told some heads of government the
Community needs more money.
    Delors said he agreed with leaders who argued the need to
reform the EC farm policy, which currently accounts for over
two thirds of the 41 billion dlr annual budget."We have to ask
for sacrifices but we have to create a future for those
farmers."
    He added, "I was forced to say to some heads of government -
Do you want to destroy this common market in agriculture when
you are asking for a common market in goods and services?"
    EC leaders have set 1992 as a target for creating a genuine
internal market in industrial products and services.
    Delors said the people had to be convinced that increasing
group resources did not necessarily mean raising their taxes.
 REUTER
